HUGO Corporation is a manufacturer that uses job-order costing. On January 1 the beginning of its fiscal year, the company's inventory balances were as follows: Raw materials P20,000 Work in process P15,000 Finished goods P30,000 The company applies overhead cost to jobs on the basis of machine-hours worked. For the current year, the company estimated that it would work 75,000 machine-hours and incur P450,000 in manufacturing overhead cost. The following transactions were recorded for the year: 1. Raw materials purchased on account P410,000. 2. Raw materials were requisitioned for use in production, P380,000 (P360,000 direct materials and P20,000 indirect materials). 3. The following costs were accrued for employees services: direct labor, P75,000: indirect labor, P110,000; sales commissions, P90,000; and administrative salaries, P200,000. 4. Sales travel costs were P17,000. 5. Utility costs in the factory were P43,000. 6. Advertising cost was P180,000 7. Depreciation was recorded for the year, P350,000 (80% relates to the factory operations, and 20% relates to selling and administrative activities). 8. Insurance expired during the year, P10,000 (70% relates to factory operations, and the remaining 30% relates to selling and administrative activities). 9. Manufacturing overhead was applied to production. Due to greater than expected demand for its products, the company worked 80,000 machine hours during the year. 10. Goods costing P900,000 to manufacture according to their job cost sheets were completed during the year. 11. Goods were sold on account to customers during the year for a total of P1,500,000. The goods cost P870,000 to manufacture according to their job cost sheets. Required: 24. Calculate the overapplied overhead. = 25. Calculate the total amount of inventory end. = 26. What is the Gross profit rate? = 27. How much is the net operating income?