QUESTION $28$

The Company's work in process inventory on June $1$ has a balance of $$22,500$ representing Job No$.265.$ During June, $$51,000$ of direct materials were requisitioned for Job No$.265$ anc labor cost was incurred on Job No$.265.$ Manufacturing overhead is allocated at $125\%$ of direct labor cost. Actual manufacturing overhead costs incurred in June amounted to $$41,600.$ started during June. Job No$.265$ is completed on June $28.$

Is manufacturing overhead overallocated or underallocated for the month of June? By how much?

$$ $$2275$ underallocated

$$13,475$ underallocated

$$13,475$ overallocated

$$2275$ overallocated