Question
The following information relates to Anderson Co. for the year 2020: Estimated Manufacturing Overhead Costs1,000,000Estimated Direct Labor Hours32,500Actual Direct Labor Hours33,500Estimated Machine Hours56,500Actual Machine Hours52,750Actual
The following information relates to Anderson Co. for the year 2020:
Estimated Manufacturing Overhead Costs1,000,000Estimated Direct Labor Hours32,500Actual Direct Labor Hours33,500Estimated Machine Hours56,500Actual Machine Hours52,750Actual Manufacturing Overhead Costs1,200,000
Ifmachine hourswere used as the allocation base, by how much would manufacturing overhead have been over or under allocated for the year?Round your answer to the nearest dollar, if applicable.
Group of answer choices
A. 200,000 underallocated
B. 200,000 overallocated
C. 266,372 underallocated
D. 266,372 overallocated
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