Berkshire Ltd Distributes Overhead Based on Direct Labour Dollars

question 46

Multiple Choice

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.

• A) $25 400 underapplied
• B) $25 400 overapplied
• C) $22 600 overapplied
• D) $22 600 underapplied

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Definitions:

Conditioning

The process of training or accustoming a person or animal to behave in a certain way or to accept certain circumstances.

Neurofeedback

A type of biofeedback that uses real-time displays of brain activity, typically through EEG, to teach self-regulation of brain functions.

Positron Emission Tomography

A nuclear medicine functional imaging technique used to observe metabolic processes in the body by detecting pairs of gamma rays emitted indirectly by a positron-emitting radionuclide.

Behavior Modification

Techniques based on learning principles used to change maladaptive or undesirable behaviors into more positive actions.