At the beginning of the year, John Smith Inc. budgeted the following: There were no beginning inventories. At the end of the year, there was no work in process; total factory overhead incurred in the year was P39,500, and underapplied factory overhead was P3,000. Factory overhead was applied on the basis of budgeted unit production. How many units were produced this year?

Units 10,000 100,000.00 Sales Less: Total Variable Expenses Total Fixed Expenses Net Income 60,000.00 20,000.00 20,000.00 Factory Overhead: Variable Fixed 30,000.00 10,000.00