ABC Company's records for May contained the following information, there were actual direct labor hours worked of 9,000 amounting to 47,000. Direct Materials purchased during the month was P16,000 and used P14,000 to production. The cost of goods sold at the end of the month was P100,000 and there was an unapplied overhead amounting to P15,000.

Ending inventories were:

Raw materials ................. 30,000

Work in process ............... 50,000

Finished goods ................ 70,000

The company uses a predetermined overhead rate of P5.00 per direct labor hour to apply manufacturing overhead. The actual overhead cost incurred during the month was:

a) P45,000.

b) P40,000.

c) P30,000.

d) P60,000.