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Biltz Company Uses a Predetermined Overhead Rate Based on Direct

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Biltz Company uses a predetermined overhead rate based on direct labor hours to allocate manufacturing overhead to jobs.During the year,the company actually incurred manufacturing overhead costs of $582,000 and 135,000 direct labor hours were worked.The company estimated that it would incur $525,000 of manufacturing overhead during the year and that 150,000 direct labor hours would be worked.
By how much was manufacturing overhead overallocated or underallocated for the year?

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Definitions:

Dermal Gills

Respiratory structures in some aquatic animals that allow for gas exchange directly through the skin.

Book Lungs

Respiratory organs in certain arachnids, such as spiders and scorpions, consisting of stacked plates for gas exchange.

Operculum

In bony fishes, a protective flap of the body wall that covers the gills.

Swim Bladders

Gas-filled sacs in fish that help maintain buoyancy in the water column.

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