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

---

Definitions:

Know-Nothing Party

A nativist political party in the United States during the 1850s that opposed immigration and favored policies that would "purify" American politics.

Republican Party

A major political party in the United States that is associated with conservative and right-leaning policies.

Democratic Party

One of the two major political parties in the United States, traditionally associated with progressive and liberal policies.

Whig Party

A political party active in the middle of the 19th century in the United States, which was opposed to the policies of the Democratic Party and advocated for a more active role of the federal government, especially in supporting a market economy.