Financial Planning PartnersInc., employs 12full-time CPAs and 10 paraprofessionals. Direct and indirect costs are applied on a professionallabor-hour basis that includes both attorney and paraprofessional hours. Following is information for2018:

Budget

Actual

Indirect costs

$300,000

$309,000

Annual salary of each attorney

$118,000

$128,000

Annual salary of each paraprofessional

$31,500

$32,500

Total professionallabor-hours

50,000

dlh

56,000

h

When using a normal costingsystem, year-end accounting records will show that indirect costs are________.

A.

perfectly allocated

B.

within budget

C.

underallocated

D.

overallocated