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Question - Barefoot Running Company's work in process inventory on June 1 has a balance of $23,100 representing Job No. 265. During June, $50,300 of direct materials were requisitioned for Job No. 265 and $35,400 of direct labor cost was incurred on Job No. 265. Manufacturing overhead is allocated at 125% of direct labor cost. Actual manufacturing overhead costs incurred in June amounted to $41,700. 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. $2,550 underallocated
B. $2,550 overallocated
C. $12,825 overallocated
D. $12,825 underallocated
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