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Ethel Company manufactures electric motors for electric fans. The company uses the JIT/Backflush Costing to manufacture the electric motor. The projected labor and factory overhead is P3,685,000; materials costs, P28 per unit. Planned production included 2,000 hours to produce 13,750 electric motors. Actual production for January was 800 units and electric motors shipped are 690 units.
Problem 1: Compute the budgeted conversion cost per unit.
a. P1,842,50
b. P120
c. P268
d. P296
Rade Company manufactures a product that passes through two processes. Prepare a physical flow schedule. Compute equivalent units for materials and for conversion cost.
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The actual direct labor for the accounting period was 6,500 hours at $19 per hour. The direct labor efficiency variance for the accounting period was
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