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Vertical Climbing Company's work in process inventory on June 1 has a balance of $23,400 representing Job No. 265. During June, $50,600 of direct

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Vertical Climbing Company's work in process inventory on June 1 has a balance of $23,400 representing Job No. 265. During June, $50,600 of direct materials were requisitioned for Job No. 265 and $35,700 of direct labor cost was incurred on Job No. 265. Manufacturing overhead is allocated at 135% of direct labor cost. Actual manufacturing overhead costs incurred in June amounted to $41,600. No new jobs were started during June. Job No. 265 is completed on June 28. Is manufacturing overhead overallocated or underallocated for the month of June? By how much? A. $6,595 underallocated B. $10,010 overallocated C. $10,010 underallocated D. $6,595 overallocated

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