Filex Company manufactures pipes and applies manufacturing overhead costs to production at a budgeted indirect-cost rate of $18 per direct labor-hour. The following data are obtained from the accounting records for June 2014:

Direct materials$140,000Direct labor (4,000 hours @ $10/hour)40,000Indirect labor13,000Plant facility rent30,000Depreciation on plant machinery and equipment22,500Sales commissions24,000Administrative expenses28,000

For June 2014, manufacturing overhead is ________.

overallocated by $21,500

underallocated by $6,500

underallocated by $21,500

overallocated by $6,500