70.Mulvey Company derived the following cost relationship from a regression analysis of its monthly manufacturing overhead cost:

C = P80,000 + P12M

WhereC = monthly manufacturing overhead cost

M = machine hours

The standard error of the estimate of the regression is P6,000.

The standard time required to manufacture one six-unit case of Mulvey's single product is 4 machine hours.Mulvey applies manufacturing overhead to production on the basis of machine hours and its normal annual production is 50,000 cases.

Mulvey's estimated variable manufacturing overhead cost for a month in which scheduled production is 5,000 cases would be

A.P80,000C.P240,000

B.P320,000D.P360,000

*with complete solution