Honesty Company prepared the following budgeted information for the coming year: Factory overhead costs P 720,000 Direct material costs P1,440,000 Units of production 120,0000 units Machine hours 400,000 hours Direct labor costs P 960,000 Direct labor hours 200,000 hours REQUIRED: 1. Determine the applied overhead rates under each of the following bases. Round off percentages to one decimal point and rates to the nearest whole centavo. a. Direct materials costs b. Direct labor costs c. Units of production d. Direct labor hours e. Machine hours

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A:

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