Before the Year Began, Plastics Manufacturing Estimated That Manufacturing Overhead

Before the year began, Plastics Manufacturing estimated that manufacturing overhead for the year would be $150,000 and that 25,000 direct labor hours would be worked. Actual results for the year included the following: If the company allocates manufacturing overhead based on direct labor hours, the manufacturing overhead for the year would have been

A) $62,000 overallocated.
B) $62,000 underallocated.
C) $32,000 overallocated.
D) $32,000 underallocated.

Correct Answer:

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