Question 30 1 pts Ti AL 1 The budget committee of Ferbel Company is preparing its manufacturing budget for the year. Initial estimates indicate an annual sales forecast of 40,000 units. The company shall also need 10,000 units for stock. Economic lot purchases of 1.750 kilos of material A at P8 per kilo and 1,000 liters of material B at P15 per liter are required to produce the 50.000 units Budgeted factory overhead expenses for this production are: Fixed factory overhead Supervision Depreciation P2.300 P4,000 Insurance P500 Variable factory overhead Indirect labor PO.50 per direct labor hour Indirect supplies P0.008 per unit General factory PO. 10 per direct labor hour Labor hours and rates for the two operations are Operation 1 4,000 hours at P5.00 per hour Operation 2 2.000 hours at P4.50 per hour The factory overhead rate based on direct labor hours would be P2.70 per direct labor hour P2.16 per direct labor hour P0.67 per direct labor hour P1.80 per direct labor hour