1. Four factory workers and a supervisor make a team in the Machining Department. The supervisor earns a P100 per hour, and the combined hourly charge of the four workers is P320. Each employee is entitled to a 2-week paid vacation and a bonus equal to 40week's wages each year. Vacation pay and bonuses are treated as indirect costs and are accrued over the 50 week work year. A provision in the union contract does not allow these employees to work in excess of 40 hours per week.

a. What is the amount to be charge to Manufacturing Overhead Control account?

2.The South tools Corporation manufactures specialized precision tools for the electronics industry. It receives various job orders. For the month of April, it started work on two orders, East and West. The total material cost for both order was estimated at P80,000 of which 60% applies to East and 40% to West. Direct labor hours were estimated at 700 for East and 400 for West. The labor rate amounted to P18 per hour. Variable overhead varies at the rate of P10 per hour.

By the end of April, 75% of the required materials were issued to production amounting to P90,000. Also, the two orders were all 50% completed with respect to labor and overhead. Labor hours for the month were charged at 360 to East and West. Variable overhead equated to the hourly rate given.

a.The total actual cost for East order for the month of April is?

3.Battle Manufacturing uses a job order cost accounting system. On October 1, the company has a balance in Work in Process Inventory of P5,500 and two jobs in process: Job No. 429, P3,000 and Job No. 430, P2,500.During October, a summary of source documents reveals the following:

Battle Manufacturing applies manufacturing overhead to jobs at an overhead rate of 70% of direct labor cost. Job No. 429 is completed during the month.

 

a. What is the balance in Work in Process Inventory at October 31? 

b. If Battle Manufacturing incurred P8,000 of manufacturing overhead in addition to indirect materials and indirect labor, was overhead over- or underapplied in October and by how much? (put "-" if overapplied) 

For Job No. 429 Materials Requisition Slips P 3,500 Labor Time Tickets P 4,400 Job No. 430 Job No. 431 Job No. 432 2,600 3,400 3,400 4,200 3,000 4,000 General Use 1,000 1,500 P13,500 P17,500