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What is the total manufacturing overhead application rate

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Reference no: EM132576527

Question - Relevant Company had the following flexible budget for 2003 at 100 percent capacity of 30,000 direct labor hours.

Direct materials P800,000

Direct labor 600,000

Variable manufacturing overhead 360,000

Fixed manufacturing overhead 288,000

What is the total manufacturing overhead application rate if the Relevant Company has to operate at 80 percent of the stated capacity?

A. P24.00

B. P27.00

C. P24.60

D. P21.60

Reference no: EM132576527

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