Greedy Co. uses a predetermined factory overhead rate based on direct labor hours. For the month of October, Avery's budgeted overhead was P150,000 based on a budgeted volume of 100,000 direct labor...

Greedy Co. uses a predetermined factory overhead rate based on direct labor hours. For the month of October, Avery's budgeted overhead was P150,000 based on a budgeted volume of 100,000 direct labor hours. Actual overhead amounted to P175,000 with actual direct labor hours totaling 110,000. How much was the overapplied or underapplied overhead?

a. P5,000 underapplied