Picasso Manufacturing Co. uses a normal cost system that applies overhead based on machine hours. The following 2020 budgeted data are available:

Variable factory overhead at 50,000 machine hours: P625, 000

Variable factory overhead at 75.000 machine hours: 937,500

Fixed factory overhead at 50,000 machine hours: 720,000

Practical capacity is 90,000 machine hours; expected capacity is 2/3 of practical. All capacity levels are within the relevant range.

During 2020, Picasso records 55,000 machine hours and P1,355,000 of overhead costs.

• Determine the variable overhead rate at practical capacity
• Determine the variable overhead rate at expected capacity
• Determine the fixed overhead rate at practical capacity
• Determine the fixed overhead rate at expected capacity.
• Determine the applied overhead at practical capacity
• Determine the applied overhead at expected capacity
• Calculate the overapplied or underapplied overhead at practical capacity
• Calculate the overapplied or underapplied overhead at expected capacity.