Elevate, Inc. is a manufacturer of bed frames. The company allocates manufacturing overhead to production...
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Accounting
Elevate, Inc. is a manufacturer of bed frames. The company allocates manufacturing overhead to production using a single, plantwide overhead rate based on the most appropriate cost driver for its labor intensive manufacturing environment. The following information is available for the year just ended:
| Estimated Manufacturing Overhead | $350,000 |
| Estimated Direct Labor Hours | 50,000 |
| Estimated Machine Hours | 10,000 |
| Actual Direct Labor Hours | 55,000 |
| Actual Machine Hours | 12,000 |
| Actual Manufacturing Overhead | $362,000 |
What is the amount by which manufacturing overhead was either underallocated or overallocated for the year?
A.
Underallocated by $278,000
B.
Underallocated by $12,000
C.
Overallocated by $58,000
D.
Overallocated by $23,000
E.
Overallocated by $35,000
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