Hilltop Manufacturing uses a predetermined manufacturing overhead rate based on machine hours to allocate manufacturing overhead to jobs. Selected data about the company's operations follows:
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Actual manufacturing overhead cost
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$501,000
|
|
Estimated manufacturing overhead cost
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$550,500
|
|
Estimated direct labor cost
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$175,800
|
|
Estimated direct labor hours
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50,300
|
|
Actual direct labor hours
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60,000
|
|
Estimated machine hours
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40,000
|
|
Actual machine hours
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35,200
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By how much was manufacturing overhead overallocated or underallocated for the year? (Round intermediary calculations to the nearest cent)
A. $66,148 underallocated
B. $66,148 overallocated
C. $16,648 overallocated
D. $16,648 underallocated