Question: Avery Co. uses a predetermined factory overhead rate based on direct labor hours. For the month of October, Averys budgeted overhead was P495, 000 based

Avery Co. uses a predetermined factory overhead rate based on direct labor hours. For the month of October, Averys budgeted overhead was P495, 000 based on a budgeted volume of 90, 000 direct labor hours. Actual overhead amounted to P480,000 with actual direct labor hours totalling P80, 000.

1. How much is the predetermined overhead rate?

2. How much is the Applied overhead?

3. How much was the over-applied or under-applied overhead?

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