Reference no: EM132771895

Luke Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the total estimated manufacturing overhead was P165,600. At the end of the year, actual direct labor-hours for the year were 11,900 hours, manufacturing overhead for the year was overapplied by P10,760, and the actual manufacturing overhead was P160,600.

Problem 1: The predetermined overhead rate for the year must have been closest to P _______ ( INCLUDE CENTAVOS, example 17.78)

Problem 2: Using the following data for a recent period, calculate the beginning finished goods inventory:

Sales P40,000

Beginning finished goods inventory ?

Cost of goods manufactured 16,000

Ending finished goods inventory 5,000

Cost of goods sold ?

Gross margin 17,000

Administrative and selling expenses ?

Net operating income 10,000