In the Omara Manufacturing Company, at an activity level of 80,000 machine hours, total overhead costs were
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In the Omara Manufacturing Company, at an activity level of 80,000 machine hours, total overhead costs were P223,000. Of this amount, utilities were P48,000 (all variable) and depreciation was P60,000 (all fixed). The balance of the overhead cost consisted of maintenance cost (mixed). At 100,000 machine hours, maintenance costs were P130,000. Assume that all of the activity levels are within the relevant range. 16. Compute for the variable cost per machine hour. 17. Compute for the total fixed cost.
18. If 110,000 machine hours of activity are projected for the next period, compute for the total expected overhead cost.
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