Reference no: EM132791234
Question 1 - ABACADA house produces a variety of household products. The firm operates 24 hours per day with three daily work shifts. The first shift workers receive "regular pay". The second shift receives an 8 percent pay premium, and the third shift receives a 12 percent pay premium. In addition, when production is schedule on weekends, the firm pays an overtime premium of 50 percent (based on the pay rate for first shift employees). Labor premiums are included in overhead. The October 2020 factory payroll is as follows:
Total Wages for October for 32,000 hours P435,600
Normal hourly wage for first-shift employees P12
Total regular hours worked, split evenly among the three shifts 27,000
How much of the total labor cost should be charged to overhead?
Question 2 - Annual demand for squash racquets is 50,000 units, and carrying costs amount to P2 per unit. Order costs for the company amount to P5. The optimum order quantity in units for squash racquets is (rounded to the nearest unit) would be _________ units.