(Pre-determined OH rate and application of overhead to job)

Maryrose Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs are expected to total P550,000 for the year, and machine usage is estimated at 250,000 hours. In January, P52,000 of overhead costs are incurred and 10,000 machine hours are used. For the remainder of the year, P548,000 of overhead costs are incurred and 240,000 machine hours are worked.

a) Determine the amount of applied factory overhead for the year.

b) Determine the over or under applied overhead at December 31.