Reference no: EM133129911
Question 1 - Victory Manufacturing Company produces a variety of products. The firm operates 24 hours per day with three (3) daily work shifts. The first shift workers receive regular pay. The second shift workers receive 10% pay premium and the third shift workers receive 20% pay premium. In addition, the firm pays an overtime (OT) premium of 30% based on the regular rate.
Actual payroll for the month of August 2022 follows:
Total wages 16,000 hours P?
Wage rate per hours First shift P80
Total regular hours worked (spread equally) 15,000 hours
How much is the total amount of payroll for the period?
Question 2 - SONA Co. received an order for 1,000 units of item AY-14. Because of the order's exacting specifications, it is anticipated that defective and spoiled work will exceed the normal rate. The materials cost per unit is P140; labor cost, P200; and factory overhead for this order is to be applied at 80% of the labor cost. During production, 150 units were found to be defective and required the following total additional costs; materials, P3,000, labor, P7,500 and factory overhead at 80% of direct labor cost. On final inspection, 50 units were classified as seconds and sold for P200 each, the proceeds being credited to the order. The customer has agreed to accept the good units.
How much is the unit cost of the finished products?