PROBLEM 3 DM Co.'s beginning and ending inventories for the month of October were: Oct-01 Oct-31 Direct materials 67,000 60,000 Work in process 145,000 170,000 Finished goods 85,000 70,000 Production data for the month of October were: Direct labor 220,000 Actual factory overhead 145,200 Direct materials purchased 179,300 Transportation in 4,400 Purchase returns and allowances 2,200 DM Co. uses one factory overhead control account and charges factory overhead to production at 70% of direct labor cost. The company does not formally recognize over- or underapplied overhead until year-end. 3. DM Co.'s net debit or credit to factory overhead control for the month of October was a. debit of PS,800 overapplied. b. debit of P8,800 underapplied. C. credit of P8,800 overapplied. d. credit of P8,800 underapplied