Question: Berkshire Ltd distributes overhead based on direct labour dollars. The estimated manufacturing overhead for the year was $520 000 and the estimated direct labour dollars

Berkshire Ltd distributes overhead based on direct labour dollars. The estimated manufacturing overhead for the year was $520 000 and the estimated direct labour dollars for the year were $130 000. Indicate the amount of underapplied or overapplied overhead if actual direct labour was $118 000 and actual manufacturing overhead was $497 400.

Select one:

a.$25 400 underapplied

b.$25 400 overapplied

c.$22 600 overapplied

d.$22 600 underapplied

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