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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:

Synaptic Knob

The bulbous end of an axon terminal in a neuron where neurotransmitters are stored before being released into the synaptic cleft to communicate with other neurons.

Neural Conduction

The process by which nerve cells (neurons) transmit electrical signals along their axons to communicate with other neurons, muscles, or glands.

Impulse

A sudden, involuntary urge to act, often without conscious consideration of the consequences.

Axon Terminals

The distal terminations of the axon branches of a neuron, responsible for releasing neurotransmitters to signal to nearby neurons, muscle cells, or glands.

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