The following transactions were incurred by Gregor Fabricators during January, the first month of its fiscal year.

Requirements

$1.$ Record the proper journal entry for each transaction.

a$.$ $$205,000$ of materials was purchased on account.

b$.$ $$170,000$ of materials was used in production; of this amount, $$152,000$ was

used on specific jobs.

c$.$ Manufacturing labor and salaries for the month totaled $$255,000.$ $$215,000$

of the total manufacturing labor and salaries was traced to specific jobs, and

the remainder was indirect labor used in the factory.

d$.$ The company recorded $$25,000$ of depreciation on the plant and plant

equipment. The company also received a plant utility bill for $$12,000$ which

will be paid at a later date.

e$.$ $$79,000$ of manufacturing overhead was allocated to specific jobs.

f$.$ The company received a bill for CAD design services for $$1,000.$

$2.$ By the end of January, was manufacturing overhead overallocated or underallocated?

By how much?