Taekwood Inc. grants bonus to its plant employees equal to 50% pay for the time saved in production. The company has set up a standard rate of production of 200 units of cutting board per hour. The standard pay per labor hour is P8. Factory overhead varies at the rate of P2.50 per hour. During the month of June, the employees worked a total of 25,000 direct labor hours and produced 6,000,000 units of cutting boards. The total variable factory overhead amounted to P62,500. Bonus checks are issued to employees in the month following the month in which the standards are exceeded.

The labor bonus for the production in June is:

The total net savings to the company for the month of June after deducting the bonus is: