Motopads Manufacturing, Inc. manufactures a single product. Variable manufacturing overhead is applied to products based on direct labor hours. The standard costs for eachunit of
Motopads Manufacturing, Inc. manufactures a single product. Variable manufacturing overhead is applied to products based on direct labor hours. The standard costs for eachunit of product are as follows: Direct material: 6 grams at P5 per gram P3000 Direct labor: 1.8 hours at P100 per hour 180.00 Variable manufacturing overhead: 1.8 hours at P50 per hour 90.00 Total standard variable cost per unit P300.00 During August, the company produced 2,000 units, with costs broken down as follows: Material purchased: 18,000 grams at 6 per gram P108,000.0 0 Material used in production: 14,000 grams - Direct labor: 4,000 hours at P9750 per hour 390,000.00 Variable manufacturing overhead costs incurred 208,000.00
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