Find what amount of overhead should applied to order number

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Reference no: EM132669086

The XYZ Company uses a predetermined overhead rate. XYZ prepared the following budget at the beginning of the year:

Direct Labor Cost P12,000
Factory Overhead P25,000
Direct labor hours 9,000
Machine hours 1,500

  • During the month of January, the cost sheet of order number 100 indicates P20 of raw materials, P50 of direct labor, 10 hours of direct labor, and 5 machine hours. Order number 100 consists of 49 units of product. XYZ applies overhead based on direct labor cost.

Problem 1: What amount of overhead should be applied to order number 100?

Reference no: EM132669086

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