Problem 2 Dunkin Donuts operates in two shifts, paying a late-shift premium of 10 percent and an overtime premium of 75 percent. The May 2020 payroll follows: Total wages for 3,000 hours P240,000 Normal hourly employee wage 80 Total regular hours worked, split evenly between the shifts 2,500 All overtime was worked by the early shift during May Shift and overtime premiums are considered part of overhead rather than direct labor. Calutan Marketing Company produced 5,500 chairs for an order. Total material cost was 51,700. Each chair required 2.2 hours of direct labor at P8.90 per hour. A total of P53,845 of factory overhead was traced to the order.