Problem 1.

Valdez Motors Co. makes motorcycles. Management wants to estimate overhead costs to plan its operations. A recent trade publication revealed that overhead costs tend to vary with machine hours. To check this, they collected the following data for the past 12 months, Months Machine Hours Overhead Costs 175 P4,500 170 4225 160 4,321 190 5,250 DO VOUTAWNY 175 4,800 200 5,100 160 4,450 150 4,200 210 5,475 10 180 4,760 11 170 4,325 12 145 3,975 Requirements: 1. Use the High-low method to estimate the fixed and variable portion of overhead costs based on machine hours. 2. If the plant is planning to operate at a level of 200 machine hours next period, what would be the estimated overhead costs? 3. Use the method of least square to estimate the fixed and variable portion of overhead costs based on machine hours.Ram company completed the Following tran cactions For October2020 . a. Purchased on account direct materials OF P10,DOO b. The Factory payroll was recorded. Direct Labor P54, 000; indirect labor P19, 999 . Employee payroll decluctions were recorded as Follows ! withholding taxes PIl,200 ESS Premiums 2,400 Phil Health Contributions 375 Pag-ibig Funds Contribution 1,620 c. Indirect materials of P20,000 were purchased. d. Employer payroll tax expense is recorded as follows: SSS Premiums P3,600 Phil Health Contributions 375 Pag-ibig Funds Contributions 1,620 e. Materials issued: direct materials -P85,000; indirect materials -P11,000 f. Defective Materials P 4,000 were returned to vendors g. Accounts Payable totalling P148,300, including accrued payroll were paid. h. Sundry factory expenses of P24,900 were recorded as liabilities i. Factory Overhead was charged to production at 120% of direct labor costs. j. Goods completed with a cost of P165,000 were transferred to finished goods k. Sales were P190,000 and cost P120,000 to produce. Requirements: 1. Entries to record the transactions given above. 2. Statement of Cost of Goods Sold