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Problem 1: A manufacturing company had actual manufacturing overhead costing of P 500,000 and predetermined overhead rate of P 3.00 per machine hour. Company worked 200,000 machine hours during the period. Total overhead of the company is:
Option 1: P 100,000 overapplied
Option 2: P 100,000 underapplied
Option 3: P 500,000 underapplied
Option 4: None of the above
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