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.)

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:

a.Cannot be determined with the amounts shown

b.=(1235011-(1297197/19955)*21027

c.=1235011-1297197

d.=1235011/21027-1297197/19955