700,000 units@ Direct materials 600,000 units of materials @ P2.00 each P1.90 60,000 hours allowed for actual output @ P7.00 per 65,000 hours @ Direct labor hour P7.20 Factory P8.00/hr on normal capacity of 50,000 direct labor overhead hours: P6.00 for variable costs P396,000 variable P2.00 for fixed costs P130,000 fixed
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