FIN Question 4

The following information was gathered for the Buckley Corporation for the most recent year. Manufacturing overhead is allocated using direct labor hours.

Estimated direct labor hours	54,000
Actual direct labor hours	57,000
Estimated manufacturing overhead costs	$ 729,000
Actual manufacturing overhead costs	$ 685,000

What is the amount of overallocated or underallocated overhead for the year?

		$44,000 underallocated
		$84,500 underallocated
		$84,500 overallocated
		$44,000 overallocated