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

Requirements

1. Record the proper journal entry for each transaction.

a. a. $215,000 of materials was purchased on account.

b. $190,000 of materials was used in production; of this amount, $164,000 was used on specific jobs.

c. Manufacturing labor and salaries for the month totaled $210,000. A total of $180,000 of manufacturing labor and salaries was traced to specific jobs, and the remainder was indirect labor used in the factory.

d. The company recorded $15,000 of depreciation on the plant and plant equipment. The company also received a plant utility bill for $8,000 which will be paid at a later date.

e. $70,000 of manufacturing overhead was allocated to specific jobs.

f. The company received a bill for CAD design services for $9,000.

2.By the end of January, was manufacturing overhead overallocated or under allocated? By how much?