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

Estimated direct labor hours	40,800
Actual direct labor hours	51,700
Estimated manufacturing overhead costs	$840,500
Actual manufacturing overhead costs	$986,000

What is the amount of overallocated or underallocated overhead for the year? (Round intermediary calculations to the nearest cent and the final answer to the nearest dollar.)

A.

$145,500 overallocated

B.

$145,500 underallocated

C.

$79,020 overallocated

D.

$79,020 underallocated