Wert Corporation uses a predetermined overhead rate based on direct labour cost to apply manufacturing overhead to jobs. Last year, the company's estimated manufacturing was $1,200,000 and its estimated level of activity was 50,000 direct labour-hours. The company's direct labour wage rate is $12 per hour. Actual manufacturing overhead amounted to $1,240,000, with actual direct labour cost of $650,000. For the year, manufacturing overhead was A) over-applied by $60,000 B) under-applied by $60,000 C) over-applied by $40,000 D) under-applied by $44,000

Wert Corporation uses a predetermined overhead rate based on direct labour cost to apply manufacturing overhead to jobs. Last year, the company's estimated manufacturing was $1,200,000 and its estimated level of activity was 50,000 direct labour-hours. The company's direct labour wage rate is $12 per hour. Actual manufacturing overhead amounted to $1,240,000, with actual direct labour cost of $650,000. For the year, manufacturing overhead was A) over-applied by $60,000 B) under-applied by $60,000 C) over-applied by $40,000 D) under-applied by $44,000