Assume a company had planned/budgeted for $1,000,000 of overheads (OHDs) in one year and budgeted for 50,000 Direct Labour Hours (DLH) AND they used DLH as their main overhead cost driver activity.

If the Actual DLHs for the year were 52,000 DLH and theActual OHDs are $1,060,000, what are the UNDER or OVER applied OHDS?

Select one:

a.

$20,000 OVER applied

b.

$60,000 UNDER applied

c.

$20,000 UNDER applied

d.

$60,000 OVER applied