Blend It Rite Inc. assembles and sells electric mixers. All parts are purchased and labor is paid on the basis of P22 per mixer assembled. The cost of the parts per mixer totals P20. As the company handles only this one product, the unit cost basis for applying factory overhead is used. Estimated factory overhead for the coming period, based on a production of 40,000 mixers, is as follows: ....Indirect materials >P60,000 .....Indirect labor >P180,000 .....Light and power >P45,000 ....Depreciation>P35,000 ...Miscellaneous >P16,000 . During the period, 42,000 mixers were assembled and actual factory overhead was P355,000. These units were completed but not yet transferred to the finished goods storeroom. Determine the amount of (over) or underapplied factory overhead.
