Reference no: EM132747008

Woodman Company uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Estimated and actual data for direct labor and manufacturing overhead for last year are as follows:

                                                  Estimated             Actual

Direct labor-hours                600,000                 550,000

Manufacturing overhead        P720,000             P680,000

Problem 1: The manufacturing overhead for Woodman Company for last year was:

Group of answer choices

Option 1: overapplied by P 40,000

Option 2: overapplied by P 20,000

Option 3: underapplied by P 40,000

Option 4: underapplied by P 20,000