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Cake Supplies applies manufacturing overhead costs to products at a budgeted indirect-cost rate of Php60 per direct manufacturing labor-hour. A retail outlet has requested a bid on a special order of the Toy Mouse product. Estimates for this order include: Direct materials Php40,000; 500 direct manufacturing labor-hours at Php20 per hour; and a 20% markup rate on total manufacturing costs.
Problem 1: Manufacturing overhead cost estimates for this special order total:
A) Php10,000
B) Php30,000
C) Php36,000
D) None of these answers is correct.
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