Reference no: EM132738716

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