Stix Company uses job-order costing and has assembled the following cost data for the production and assembly of item Hiker Direct manufacturing labor wages $70,000 Direct material used $140,000 Indirect manufacturing labor $8000 Utilities $800 Fire insurance for premises $1000 Manufacturing overhead applied $22,000 Indirect materials $12,000 Depreciation on equipment 1200 Based on the above cost data, the manufacturing overhead for item

a. $1,000 overallocated.

b. $1,200 overallocated.

c. $1,200 underallocated

d. $1,000 underallocated.