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Actual Cost (240,000 + 162,000) + 35,000

The document computes the actual and normal costs for a manufacturing project. The actual cost using an actual costing system is P437,000, which is the direct labor of P240,000 plus direct materials of P162,000 plus manufacturing overhead of P35,000. The normal cost using a normal costing system is P9,900,000, which is calculated by taking the predetermined overhead rate of P55 per direct labor hour, multiplied by the actual direct labor hours of 180,000.

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Junzen Ralph Yap
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111 views1 page

Actual Cost (240,000 + 162,000) + 35,000

The document computes the actual and normal costs for a manufacturing project. The actual cost using an actual costing system is P437,000, which is the direct labor of P240,000 plus direct materials of P162,000 plus manufacturing overhead of P35,000. The normal cost using a normal costing system is P9,900,000, which is calculated by taking the predetermined overhead rate of P55 per direct labor hour, multiplied by the actual direct labor hours of 180,000.

Uploaded by

Junzen Ralph Yap
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Geraldine Amarillo

Costing and Pricing


Miss Giselle Plarisan

1.Compute for the total actual cost using actual costing system.

Direct Labor P240,000


Direct Materials 162,000
Manufacturing Overhead 35,000

Actual Cost= (240,000 + 162,000) + 35,000


= 402,000 + 35,000
=P 437,000

1. Solved for the following using normal costing system.

Fixed Cost P3,000,000


Variable Cost Per Direct Labor Hours (DLH) 30
Budgeted annual Direct Labor (DLH) 120,000
Actual Direct Labor Hours utilized 180,000

A. Predetermined Overhead Rate


DLH= P3,000,000 + (120,000 x 30)
120,000 DLH
=P 3,000,000 + 3,600,000
120,000 DLH
= P55 per DLH

B. Normal Cost = Predetermined Overhead rate x Actual Direct Labor


NC = P 55 x 180,000
= 9,900,000

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