Sunny Company manufactures pipes and applies manufacturing overhead costs to production at a budgeted indirect cost allocation rate of $$16$ per direct labour hour. The following data are obtained from the accounting records for June of the current year:

Direct materials $$280,000$

Direct labour $(7,000$ hours @ $$11/$hour$)$ $$77,000$

Indirect labour $$15,000$

Plant facility rent $$60,000$

Depreciation on plant machinery and equipment $$30,000$

Sales commissions $$40,000$

Administrative expenses $$50,000$

For June, manufacturing overhead was $\_\_\_\_\_\_\_\_.$

Question $3$ options:

overallocated by $$7,000$

neither underallocated or overallocated

overallocated by $$5,000$

underallocated by $$33,000$

overallocated by $$90,000$