Biology Forums - Study Force

Hilltop Manufacturing uses a predetermined manufacturing overhead rate based on machine hours to allocate manufacturing overhead to jobs. Selected data about the company's operations follows:

Actual manufacturing overhead cost   $500,000
Estimated manufacturing overhead cost   $550,000
Estimated direct labor cost   $175,000
Estimated direct labor hours    50,000
Actual direct labor hours    60,000
Estimated machine hours    40,000
Actual machine hours    35,000

By how much was manufacturing overhead overallocated or underallocated for the year?
A) $28,500 overallocated
B) $18,750 overallocated
C) $18,750 underallocated
D) $28,500 underallocated

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