Compute what amount of overhead applied to order number

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Reference no: EM132694137

The XYZ Company uses a predetermined overhead rate. XYZ prepared the following budget at the beginning of the year:

Direct Labor Cost P12,000

Factory Overhead P25,000

Direct labor hours 9,000

Machine hours 1,500

During the month of January, the cost sheet of order number 100 indicates P20 of raw materials, P50 of direct labor, 10 hours of direct labor, and 5 machine hours. Order number 100 consists of 49 units of product. XYZ applies overhead based on direct labor cost.

Problem 1: What amount of overhead should be applied to order number 100?

Reference no: EM132694137

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