Direct labor hrs.

% Square footage %

Machinery P 2,000 55.56% P 1,900 37.25%

Assembly 1,600 44.44% 3,200 62.75%

P 3,600 100% P 5,100 100%

Allocation:

Machinery Assembly

Factory administration

129,000 × 55.56% P 71,672

129,000 × 44.44% P 57,328

Building and Grounds

105,000 × 37.25% 39,113

105,000 × 62.75% 65,888

Total P 110,785 P 123,216

Total cost after allocation:

Machinery P 416,000 + 110,785 = P 526,785

Assembly P 380,000 + 123,216 = P 503,216

Factory overhead rates (based on machine hrs)

Machinery P 526,785 / 30,000 = 17.55 OR 17.56 per hr.

Assembly P 503,216 / 22,800 = 22.07 per hr.