Nil Co Uses a Predetermined Overhead Rate Based on Direct Labour

question 1

Multiple Choice

Nil Co. uses a predetermined overhead rate based on direct Labour cost to apply manufacturing overhead to jobs. For the year ended December 31, Nil's estimated manufacturing overhead was £600,000, based on an estimated volume of 50,000 direct Labour hours, at a direct Labour rate of £6.00 per hour. Actual manufacturing overhead amounted to £620,000, with actual direct Labour cost of £325,000. For the year, manufacturing overhead was

• A)overapplied by £20,000.
• B)underapplied by £22,000.
• C)overapplied by £30,000.
• D)underapplied by £30,000.

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Definitions:

Dorsal Roots

The sensory branches of spinal nerves that transmit sensory information from the peripheral nervous system to the spinal cord.

Spinal Cord

A long, thin, tubular bundle of nervous tissue and support cells that extends from the brainstem down the back, transmitting nerve signals to and from the brain.

Sensory Neurons

Nerve cells responsible for converting external stimuli from the organism's environment into internal electrical impulses.

Resting Potential

Membrane potential of a neuron at rest.