Question
Biltz Company uses a predetermined overhead rate based on direct labor hours to allocate manufacturing overhead to jobs. During the year, the company actually incurred
Biltz Company uses a predetermined overhead rate based on direct labor hours to allocate manufacturing overhead to jobs. During the year, the company actually incurred manufacturing overhead costs of $ 582700 and 135300 direct labor hours were worked. The company estimated that it would incur $ 526 comma 000 of manufacturing overhead during the year and that 150900 direct labor hours would be worked. By how much was manufacturing overhead overallocated or underallocated for the year? (Round intermediary calculations to the nearest cent.)
A.
$ 56 comma 700$56,700
overallocated
B.
$ 110 comma 503$110,503
underallocated
C.
$ 110 comma 503$110,503
overallocated
D.
$ 56 comma 700$56,700
underallocated
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