Reference no: EM132667315

Problem 1: A job order for 500 units of children's party giveaways were processed with costs of P80,000 and P30,000 for direct materials and direct labor, respectively. Factory overhead was applied at 50% of direct labor cost which excludes a 5% provision for spoilage. Prior to transfer to the storeroom, 25 units were found to be spoiled with an estimated market value of P50 per unit. Assuming that the 25 units were only defective and are not sold but instead reworked for total direct materials cost of F375 and total direct labor cost of P500. What is the unit cost of the goods transferred to storeroom if the rework costs are charged to the specific job?

Problem 2: A worker takes 13 hours to complete a work on daily wages and 3 hours on a scheme of bayn‘rent by results. The workers day rate W per hour. The cost of material of the product is PEEK} and the overheads are recovered at zoos of the total wages. The company has an incentive plan of giving bonus for the time saved in a certain job. Bonus is computed as time saved over time allowed to complete the job muitiplied by the time taken by the worker multiplied by the rate per hour. Mr. X oompleted the job within 8 hours including a 30-minute idle time. How much is the wage of Mr. X?