The following information was gathered for the Tutu Corporation for the most recent year. Manufacturing overhead is allocated using direct labor hours.

Estimated direct labor hours

67,000

Actual direct labor hours

72,000

Estimated manufacturing overhead costs

$1,541,000

Actual manufacturing overhead costs

$1,578,000

By how much is manufacturing overhead over orunderallocated?

A.

$78,000 overallocated

B.

$78,000 underallocated

C.

$37,000 underallocated

D.

$37,000 overallocated