Rivera Marianel A.

Water Pipe Manufacturing

Water Pipe Manufacturing completes job #727 on January 10. The job used 45
direct labor hours and 40
machine hours. The job consumed P3,200 worth of materials. The average direct
labor rate is P70.00 per hour
and the company uses the predetermined overhead rate of 8.50 per direct labor
hour.
Provide the following: (3 items x 10 points)
A. Direct Labor
B. Applied Overhead
C. Total Cost of Job #727

DIRECT LABOR = Rate X Activity

= 70 Per direct labor hour X 45 Direct labor hour
= 3,150
Applied Overhead = Predetermine overhead rate X Activity
= 8.50 X 45 Direct labor hours
= 382.5

Direct Materials P3,200.00

Direct Labor P3,150.00
Applied Overhead P382.5
Total = 6,732.5