XYZ Company manufactures picture frames of all sizes and shapes and uses job order costing system. There is always some spoilage in each production run. The following costs relate to the current production run. Estimated overhead (exclusive of allowance for spoilage) • Spoilage allowance (estimated) P250,000 P 37,500 120,000 Direct Labor hours A single unit of frame requires direct material and direct labor in the amount of P5.00 and P6.00 respectively, and 1.5 direct labor hours. 31. Assuming spoilage is attributable to all jobs, what is the unit cost of each frame? a. 14.60 b. 13.40 c. 14.75 d. 13.50 32. Assuming spoilage is attributable to the specific job, what is the unit cost of each frame? a. 14.14 b. 14.60 c. 13.12 d. 14.12

XYZ Company manufactures picture frames of all sizes and shapes and uses job order costing system. There is always some spoilage in each production run. The following costs relate to the current production run. Estimated overhead (exclusive of allowance for spoilage) • Spoilage allowance (estimated) P250,000 P 37,500 120,000 Direct Labor hours A single unit of frame requires direct material and direct labor in the amount of P5.00 and P6.00 respectively, and 1.5 direct labor hours. 31. Assuming spoilage is attributable to all jobs, what is the unit cost of each frame? a. 14.60 b. 13.40 c. 14.75 d. 13.50 32. Assuming spoilage is attributable to the specific job, what is the unit cost of each frame? a. 14.14 b. 14.60 c. 13.12 d. 14.12

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Description: XYZ Company manufactures picture frames of all sizes and shapes and uses job order costing system.There is always some spoilage in each production run. The following costs relate to the currentproduction run.• Estimated overhead (exclusive of allowa

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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