All costs incidental to materials procurement and handling until they are issued are charged to the materials account by Cruz Mfg. Co. at a rate predetermined for each of the departments involved. For...

All costs incidental to materials procurement and handling until they are issued are charged to
the materials account by Cruz Mfg. Co. at a rate predetermined for each of the departments
involved.
For 19C, the estimated departmental costs are given:
Purchasing department P175,000
Receiving and Inspection Dept. 124,500
Materials department 83,000
Accounting department (20% is
estimated to be related to
processing of payments for
materials.
295,000
Purchases for 19C were estimated to amount to P5, 000,000 for more or less 8,300,000
units to be ordered 50 times.
Actual purchases for 19C amounted to P5, 600,000 for total of 8,000,000 units in 52
orders. Costs incurred by the four given departments were as follows:
Purchasing department P180,000
Receiving and inspection
department
128,000
Materials department 78,000
Accounting department (20% is
estimated to be related to
processing of payments for
materials.
290,000
Required:
a. Compute for the predetermined departmental overhead rates.
b. How much is the applied material handling cost per department?
c. How much is the material handling variance?