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ORNAMENTAL Co.'s factory overhead rate is pre-determined at the start of the fiscal period based on expected actual production capacity. Budgeted factory overhead is P175,000
ORNAMENTAL Co.'s factory overhead rate is pre-determined at the start of the fiscal period based on expected actual production capacity. Budgeted factory overhead is P175,000 for a normal capacity of 50,000 units and P225,000 for a maximum capacity of 75,000 units. At the beginning of 2011, the company forecasted a production of 60,000 units. For 2011, the factory overhead rate per unit would be:
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