The actual overhead cost incurred during the month was:

A) $40,000.
B) $50,000.
C) $55,000.
D) $45,000.

Actual Overhead Cost

The real expenses incurred during production that are not directly tied to specific products, including electricity, rent, and managerial salaries.

Direct Labour-Hours

The total hours worked by employees that are directly involved in the manufacturing process of a product.

Overapplied Overhead

A condition where the overhead applied to products or services exceeds the actual overhead costs incurred.