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1. Meow Supplies applies manufacturing overhead costs to products at a budgeted indirect-cost rate of P60 per direct manufacturing labor-hour. A retail outlet has
1. Meow Supplies applies manufacturing overhead costs to products at a budgeted indirect-cost rate of P60 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 P40,000; 500 direct manufacturing labor-hours at P20 per hour; and a 20% markup rate on total manufacturing costs. Manufacturing overhead cost estimates for this special order total: 2. CVMC uses a job-costing system for all patients who have surgery. In Aug, the pre-operating room (PRE-OP) and operating room (OR) had budgeted allocation bases of 4,000 nursing hours and 2,000 nursing hours, respectively. The budgeted nursing overhead charges for each department for the month were P168,000 and P132,000, respectively. The hospital floor for surgery patients had budgeted overhead costs of P1,200,000 and 15,000 nursing hours for the month. For patient Fred Adams, actual hours incurred were eight and four hours, respectively, in the PRE-OP and OR rooms. He was in the hospital for 4 days (96 hours). Other costs related to Adams were: PRE-OP Costs OR Costs In-room Costs Patient medicine P 200 P 500 P2,400 Direct nursing time P1,000 P2,000 P3,000 The hospital uses a budgeted overhead rate for applying overhead to patient stays. Required: What is the total cost of the stay of patient Fred Adams?
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