Bear Company uses job-order costing and has assembled the following cost data for the production and assembly of item X:

Direct manufacturing labor wages

$38,000

Direct material used

85,000

Indirect manufacturing labor

3,700

Utilities

420

Fire insurance

510

Manufacturing overhead applied

9,000

Indirect materials

6,400

Depreciation on equipment

500

Based on the above cost data, the manufacturing overhead for item X is:

A.

$ 2 comma 530 underallocated.

B.

$ 500 overallocated.

C.

$ 500 underallocated.

D.

$ 2 comma 530 overallocated.