1. Honesty Chocolate Bar Inc. estimates its factory overhead for the next period at P1,000,000. It is estimated that 20,000 units will beproducedand it will require 50,000 direct labor hours at an estimated cost of P500,000. The machines will run about 160,000 hours. At the end of the period, actual overhead cost amounted to P1,100,000 and actual direct labor hours is 52,000.What is the predetermined OH Rate if company uses plant-wide rate based on direct labor hours?

2. Honesty Co. wants to develop a single predetermined overhead rate. The company's expected annual fixed overhead is P350,000 and its variable overhead cost per machine hour is P2. The company's relevant range is from 200,000 to 600,000 machine hours. Honesty expects to operate at 500,000 machine hours for the coming year. The plant's theoretical capacity is 850,000. Determine the predetermined overhead rate per machine hour.