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A company budgeted its overhead (or indirect) costs for the next year at $1297197 and using the cost driver of Direct Labour Hours (DLH) it budgeted to use 19955 DLH. (Use these amounts to calculate the Budgeted Manufacturing Overhead Rate.)
Question 1: If the Actual Overheads for the year were $1235011 and the Actual DLH worked was 21027, then calculate the difference between the amount of overhead applied and the actual overhead and select your answer from the following choices: (Note over or under overhead is NOT shown, only the amount)
Select one:
Option a. Cannot be determined with the amounts shown
Option b. =(1235011-(1297197/19955)*21027
Option c. =1235011-1297197
Option d. =1235011/21027-1297197/19955
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