During 2013, Arb Company incurred the following direct labor costs: January Php20,000 and February Php30,000. Arb uses a predetermined overhead rate of 120% of direct labor cost. Estimated overhead for the 2 months, respectively, totaled Php19,500 and Php35,700. Actual overhead for the 2 months, respectively, totaled Php24,500 and Php32,500.

Instructions

Determine if overhead is over- or underapplied for each of the two months and the respective amounts.