Reference no: EM132914803

Problem - Old Navy Manufacturing Company uses departmental rates for applying overhead to production. The following cost information is available:

	Dept 1	Dept 2	Dept 3
Estimated monthly OH	P640,000	P360,000	P100,800
Estimated production:
Materials used	P200,000	P120,000	P100,000
Direct labor cost	P160,000	P150,000	P84,000
Direct labor hours	8,000	5,000	3,500

Basis of applying overhead DL hours DL cost Materials used

For a given period, the actual cost records show the following for a Job ordered by UNO company:

	Dept 1	Dept 2	Dept 3
Materials used	P120,000	P72,000	P60,000
Direct labor costs	96,000	90,000	P50,400
Direct labor hours	4,800	2,500	2,100

Required -

1. Determine the amount of factory overhead applied to the job using departmental rates?

2. Using plant-wide rate based on direct labor hours, determine the amount of voerhead applied to the job?