Sunny Company manufactures pipes and applies manufacturing overhead costs to production at a budgeted indirect cost allocation rate of $15 per direct labour hour. The following data are obtained from the accounting records for June in the current year:

Direct materials

$280,000

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

$77,000

Indirect labour

$20,000

Plant facility rent

$60,000

Depreciation on plant machinery and equipment

$30,000

Sales commissions

$40,000

Administrative expenses

$50,000

3) For June, manufacturing overhead was

A) overallocated by $90,000.

B) underallocated by $5,000.

C) neither underallocated or overallocated.

D) underallocated by $33,000.

E) overallocated by $5,000.