Problem solving

Required:

Justine Company budgeted overhead cost at P180,000 for the current period. In addition, they budgeted costs for factory rent at P215,000, cots for depreciation of office equipment at P12,000 costs for office rent at P92,000, and costs for depreciation of factory equipment at P38,000. All these were based upon estimated machine hours of P80,000. At the end of the period. The factory overhead control account has a balance of P373,875. Actual machine hours were 74,000.

Required:

1. Compute the over-underapplied factory overhead for the period.

2. Journalize the over-underapplied factory overhead.