Orchid, Incorporated has just completed its first year of operations. The unit costs on a normal costing basis are as follows: Manufacturing costs (per unit): During the year, the company had the following activity: Direct materials (2 lbs. @ P2) P 4.00 Units produced 24,000 Direct labor (1.5 hrs. @ P9) Variable overhead (1.5 hrs. @ P2) Fixed overhead (1.5 hrs. @P3) Total 13.50 Units sold 21,500 3.00 Unit selling price P 42 4.50 Direct labor hours worked 36,000 P25.00 Selling and administrative expenses: Variable Fixed P 5/unit P190,000 Actual fixed overhead was P12,000 less than budgeted fixed overhead. Budgeted variable overhead was P5,000 less than the actual variable overhead. The company used an expected level of 36,000 direct labor hours to compute the predetermined overhead rates. Any overhead variances are closed to Cost of Goods Sold. What is the over- or underapplied factory overhead? * Some other answer P 8,500 overapplied P7,000 underapplied P5,000 overapplied P 12,000 underapplied How much is the net income under (1) absorption, and (2) variable costing? * (1) P61,000; (2) #49,750 some other answer (1) P61,000; (2) P56,750 (1) P68,000; (2) P56,750 (1) P72,250; (2) 68,000 2 points 2 points