Cost of Building and Warehouse

PROBLEM #5 AA Company summarized construction activities for 2015 as follows: Office Warehouse Building Direct 4,500,000 750,000 materials Direct labor 6,000,000 1,500,000 Compute for the cost of office building AND warehouse under each of the following independent situations. Case 1: Overhead is 70% of direct labor cost. Case 2: Assuming that the overhead related to such activities amounted to P4,000,000 and is allocated using the following independent methods: a. 60% is to be assigned to the warehouse. b. Labor hours: 4,000 hours, office building; 6,000 hours, warehouse c. Apportioned in the ratio of direct labor cost d. Normal production of 24,000 units: 20,000 units, office building; balance, warehouse