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Problem 1: During the month of July, direct labor cost totaled P12, 000 and direct labor cost was 30% of prime cost. If total manufacturing costs during July were P86, 000, the manufacturing overhead was:
a. P46, 000b. P40, 000c. P28, 000d. P74, 000
Problem 2: The manufacturing overhead amounts to 50% of the direct labor, and the direct labor and manufacturing overhead combined equal 50% of the total cost of manufacturing. All materials are purchased FOB shipping point What is the cost of goods manufactured?
a. P180, 610. 80b. P182, 300. 00c. P181, 200. 80d. P183, 200. 80
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