The plant of Omer company uses Job order costing system. And allocates manufacturing overhead cost using a budgeted rate of $8 per one machine hour, if

the 2020 budgeted overhead cost $360,000 .

Calculate the over/under allocated overhead assuming 45,000 machine hours used and $385,000 actual overhead expensed during 2020

Select one:

a. $30,000 over allocated

b. $25,000 over allocated

c. $25,000 under allocated

d. $20,000 over allocated

e. $20,000 under allocated