GHI Manufacturing Company charges manufacturing overhead to products by using a predetermined application rate, computed on the basis of machine hours. The following data pertain to the current year:

Budgeted manufacturing overhead: P480,000

Actual manufacturing overhead: P440,000

Budgeted machine hours: 20,000

Actual machine hours: 16,000

Overhead applied to production totaled:

Select one:

a.

P600,000.

b.

P550,000.

c.

P352,000.

d.

P384,000.

e.

some other amount.