Reference no: EM133114493
Questions -
Q1. PALOS Manufacturing Co. has an expected production level of 175,000 product units for19x7. Fixed factory overhead is P450,000 and the company applies factory overhead on the basis of expected production level at the rate of P5.20 per unit. Determine the variable overhead cost per unit?
A. P2.57
B. P2.63
C. P2.93
D. P3.02
Q2. Negros Co.'s factory overhead rate is pre-determined at the start of the fiscal period based on expected actual production capacity. Budgeted factory overhead is Ph175,000 for a normal capacity of 50,000 units and Ph225,000 for a maximum capacity of 75,000 units. At the beginning of 2020, the company forecasted a production of 60,000 units. For 2020, the factory overhead rate per unit would be?
A. P 2.75
B. P 3.00
C. P 3.25
D. P 3.50
Q3. Phi Co. normally uses 40,000 direct labor hours for manufacturing 120,000 units of product. Three units are produced in one hour, and the direct labor rate is P15 per hour. At normal capacity of 40,000 hours, the factory overhead is estimated as follows:
Fixed overhead P100,000
Variable overhead 120,000
Total overhead P220,000
If 30,000 direct labor hours are used, total factory overhead costs would amount to:
a. 165,000
b. 195,000
c. 190,000
d. 220,000