Elevate, Inc. is a manufacturer of bed frames. The company allocates manufacturing overhead to production using a single, plantwide overhead rate based on the most appropriate cost driver for its labor intensive manufacturing environment. The following information is available for the year just ended:

Estimated Manufacturing Overhead	$350,000
Estimated Direct Labor Hours	50,000
Estimated Machine Hours	10,000
Actual Direct Labor Hours	55,000
Actual Machine Hours	12,000
Actual Manufacturing Overhead	$362,000

What is the amount by which manufacturing overhead was either underallocated or overallocated for the year?

A. Overallocated by $58,000

B. Underallocated by $278,000

C. Overallocated by $35,000

D. Underallocated by $12,000

E. Overallocated by $23,000