1. Luna L., a production employee is paid P180 per hour for a regular work of 40...

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Question:

1. Luna L., a production employee is paid P180 per hour for a regular work of 40 hours. During the week ended April 24, Luna L. worked 50 hours and earned time and a half for overtime hours.

What amount should be charged to the Work in Process account, if the overtime premium is charged to manufacturing overhead?

2. The data given below relate to Material XX used by Jose Shoes Factory, Inc. Beginning balance 480 at P4.80 each Purchase order #30 600 at P4.90 each Requisition #46 175 Requisition#49 225 Requisition #50 280 Purchase order #96 400 at P4.95 each Requisition #52 310 Returned Materials report #24 (from requisition #50) 20.

What is the cost of the ending inventory using the FIFO costing method?

3. Four factory workers and a supervisor make a team in the Machining Department. The supervisor earns P100 per hour, and the combined hourly charge of the four workers is P320. Each employee is entitled to a 2-week paid vacation and a bonus equal to 4 week's wages each year. Vacation pay and bonuses are treated as indirect costs and are accrued over the 50 week work year. A provision in the union contract does not allow employees to work in excess of 40 hours per week.

What is the amount charged to the Manufacturing Overhead Control account?

4. Matil Corporation estimates that its production for the coming year will be 20,000 units, which is 80% of normal capacity, with the following unit costs: Materials P60 Direct labor P80 Direct labor is paid at the rate of P40 per hour. The machine should be run for 30 minutes to produce one unit. Total estimated overhead is expected to consist of P800,000 for variable overhead and P800,000 for fixed overhead.

What is the overhead rate based on material cost using the normal capacity activity level?

5. Matil Corporation estimates that its production for the coming year will be 20,000 units, which is 80% of normal capacity, with the following unit costs: Materials P60 Direct labor P80 Direct labor is paid at the rate of P40 per hour. The machine should be run for 30 minutes to produce one unit. Total estimated overhead is expected to consist of P800,000 for variable overhead and P800,000 for fixed overhead.

What is the predetermined overhead rate based on material cost?