Plato Company is to submit a bid on the production of 22,500 ceramic plates. It is estimated that the cost of materials will be P26,000 and the cost of direct labor will be P30,000. Factory overhead is applied at P2.70 per direct labor hour in the Molding Department and at 35% of the direct labor cost in the Decorating Department. It is estimated that 2,000 direct labor hours, at a cost of P18,000 will be required in the Molding Department. The company wants a markup of 45% of its total production cost. How much will the company bid for the ceramic plates? Your answer PROBLEM 5 The following cost data relate to the manufacturing activities of the Kamas Company during the most recent year. Factory overhead costs incurred during the year: P 1,600 Property taxes - factory Utilities factory - Indirect labor Depreciation - factory Insurance - factory Total Actual FOH costs Other costs incurred during the year: Purchases of raw materials Direct labor cost 2,600 5,100 13,000 2,500 P 24,800 P 15,000 22,000 Inventories: Raw materials, beginning Raw materials, ending Work-in-process, beginning Work-in-process, ending P 5,000 4,400 3,500 4,500 The company uses a predetermined overhead rate to charge overhead cost to production. The rate for the year just completed was P4.00 per machine-hour; a total of 6,000 machine-hours were recorded for the year. Compute for the cost of goods manufactured for the year.