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Bell Inc. decided to use direct labor hours to calculate a predetermined overhead rate to allocate overhead cost to jobs. During the? year, the company actually incurred manufacturing overhead costs of $582,100 and 136,000 direct labor hours were worked. The company estimated that it would incur $525,600 of manufacturing overhead during the year and that 150,400 direct labor hours would be worked.
Problem 1: Was manufacturing overhead overallocated or underallocated for the? year? By how? much? ?(Round intermediary calculations to the nearest? cent.)
A. $107,460 underallocatedB. $56,500 overallocatedC. $56,500 underallocatedD. $107,460 overallocated
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