Products at BREAD Manufacturing are sent through two production departments: Fabricating

and Finishing. Overhead is applied to products in the Fabricating Dept. based on 150 percent of
direct labor cost and P18 per machine hour in Finishing. The following information is available
about Job #639:
                                                     Fabricating             Finishing

            Direct material                     P1,590                   P580
            Direct labor cost                           ?                      48
            Direct labor hours                       22                         6
            Machine hours                              5                       15
            Overhead applied                     429                         ?

What is the total cost of Job #639?

Materials (1,590 + 580) 2,170

Labor cost
Fabricating (150% DL) Finishing 48
FOH = 150% (DL)
429 = 150% (DL)
DL = 429/150% 286
FOH 429 FOH = 18 (15) 270

Total = 2,170 + 48 + 286 + 429 + 270

Total = 3,203

BREAD Co. uses a job order costing system and the following information is available from its
records. The company has 3 jobs in process: #5, #8, and #12.

                        Raw material used                          P120,000

                        Direct labor per hour                             P8.50
                        Overhead applied based on
                             direct labor cost                                 120%

Direct material was requisitioned as follows for each job respectively: 30 percent, 25 percent,
and 25 percent; the balance of the requisitions was considered indirect. Direct labor hours per
job are 2,500; 3,100; and 4,200; respectively. Indirect labor is P33,000. Other actual overhead
costs totaled P36,000.

What is the total amount of actual overhead?

Job 5
Materials (120,000 x 30%) 36,000
Labor cost (2,500 x 8.50) 21,250
FOH (120% x 21,250) 25,500
Total 82,750

Job 8
Materials (120,000 x 25%) 30,000
Labor cost (3,100 x 8.50) 26,350
FOH (120% x 26,350) 31,620
Total 87,970 Total 170,720

Job 12
Materials (120,000 x 25%) 30,000
Labor cost (4,200 x 8.50) 35,700
FOH (120% x 35,700) 42,840 Total: 99,960
Total

Indirect materials (20% x 120,000) 24,000

Indirect labor 33,000
Other charges 36,000
Total 93,000

BREAD Co. uses a job order costing system and the following information is available
from its records. The company has 3 jobs in process: #5, #8, and #12.

                        Raw material used                          P120,000

                        Direct labor per hour                             P8.50
                        Overhead applied based on
                             direct labor cost                                 120%

Direct material was requisitioned as follows for each job respectively: 30 percent, 25
percent, and 25 percent; the balance of the requisitions was considered indirect. Direct
labor hours per job are 2,500; 3,100; and 4,200; respectively. Indirect labor is P33,000.
Other actual overhead costs totaled P36,000.
Assume the balance in Work in Process Inventory was P18,500 on June 1 and
P25,297 on June 30. The balance on June 30 represents one job that contains
direct material of P11,250. How many direct labor hours have been worked on this
job (rounded to the nearest hour)?

Work in process, end 25,297

Materials 11,250
Labor and FOH 14,047
Labor cost (6,385)/8.50 = 751
FOH 7,662

X = Labor cost + 120% (Labor cost)

14,047 = LC + 1.2 LC
14,047 = 2.2LC
LC = 14,047/2.2
LC = 6,385

BREAD Company manufactures customized motors on a job-order basis. Job 492 is an order for
100 units. It requires the following:
                        direct materials                          P3,000
                        direct labor (P10/hr)                    1,000
                        overhead (150% DL PESOS)        1,500

After inspection, 2 units required rework which required 8 additional direct labor hours and P60
of materials.

If the rework is considered abnormal defects, what is the cost of job 492?
Charged to Loss from abnormal defect – period cost
(expense)