Franklin Inc. manufactures pipes and applies manufacturing overhead costs to production at a budgetedindirect-cost rate of$18 per directlabor-hour. The following data are obtained from the accounting records for June2018:

Direct materials

$170,000

Direct labor(4,600 hours@ $10/hour)

46,000

Indirect labor

17,000

Plant facility rent

34,000

Depreciation on plant machinery and equipment

24,500

Sales commissions

33,000

Administrative expenses

28,000

For June2018, manufacturing overhead is________.

A.

overallocated by$20,700

B.

underallocated by$20,700

C.

underallocated by$7,300

D.

overallocated by$7,300