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1. What is the pre-determined overhead rate? A. P 5.69 P 4.86 P 5.45 P 4.27 В. С. D.

1. What is the pre-determined overhead rate? A. P 5.69 P 4.86 P 5.45 P 4.27 В. С. D.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Raven Company manufactures personalized hand towel of all sizes and shapes and uses job order costing system. Spoilage is expected in each production run. The following estimated costs and activity relate to the current production run. Overhead (exclusive of spoilage allowance) Allowance for spoilage Allowance for spoilage Sales value of spoiled items P 437,500 53,125 21,875 90,000 DLH Labor hours During the year, 200 towels were considered spoiled. The spoilage is attributable to internal failure. A personalized hand towel requires direct material and direct labor amounting to P25.00 and P30.00, respectively, and needed half an hour. 1. What is the pre-determined overhead rate? P 5.69 P 4.86 P 5.45 P 4.27 А. В. C. D. 2. What is the initial total cost of one hand towel assuming the spoilage is due to exacting specifications of the customer? А. Р 59.86 В. Р 60.45
Transcribed Image Text:Raven Company manufactures personalized hand towel of all sizes and shapes and uses job order costing system. Spoilage is expected in each production run. The following estimated costs and activity relate to the current production run. Overhead (exclusive of spoilage allowance) Allowance for spoilage Allowance for spoilage Sales value of spoiled items P 437,500 53,125 21,875 90,000 DLH Labor hours During the year, 200 towels were considered spoiled. The spoilage is attributable to internal failure. A personalized hand towel requires direct material and direct labor amounting to P25.00 and P30.00, respectively, and needed half an hour. 1. What is the pre-determined overhead rate? P 5.69 P 4.86 P 5.45 P 4.27 А. В. C. D. 2. What is the initial total cost of one hand towel assuming the spoilage is due to exacting specifications of the customer? А. Р 59.86 В. Р 60.45
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