Glass Co.

uses a job order costing system and develops its predetermined overhead rate based on
machine hours. The company has two jobs in process at the end of the cycle, Jobs #17 and #19.

Budgeted overhead P100,300

Budgeted machine hours 85,000

Raw material P 63,000

Labor cost P 50,000

What amount of overhead is charged to Jobs #17 and #19? Machine hours are split between Jobs #17
and #19—65 percent and 35 percent, respectively. Actual machine hours equal budgeted machine
hours.

ANSWER: OH Applied = MH Cost × POHR

#17 85,000 × 65%= 55,250 × P1.18 = P65,195

#19 85,000 × 35%= 29,750 × P1.18 = P35,105