The following account balances at the beginning of January were selected from the general ledger of Ocean City Manufacturing Company:

Additional data:1)Actual manufacturing overhead for January amounted to $62,000.
2)Total direct labor cost for January was $63,000.
3)The predetermined manufacturing overhead rate is based on direct labor cost. The budget for the year called for $250,000 of direct labor cost and $350,000 of manufacturing overhead costs.
4)The only job unfinished on January 31 was Job No. 151, for which total direct labor charges were $5,200 (800 direct labor hours)and total direct material charges were $14,000.
5)Cost of direct materials placed in production during January totaled $123,000. There were no indirect material requisitions during January.
6)January 31 balance in raw materials inventory was $35,000.
"7)Finished goods inventory balance on January 31 was $34,500.
Has manufacturing overhead been overallocated or underallocated and by what amount as of January 31?"
A)$26,200 overallocated
B)$26,200 underallocated
C)$17,000 overallocated
D)$17,000 underallocated

Poland's Paints Allocates Overhead Based on Machine Hours

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