Biltz Company Uses a Predetermined Overhead Rate Based on Direct

question 144

Multiple Choice

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 $582,100 and 135,200 direct labor hours were worked. The company estimated that it would incur $525,700 of manufacturing overhead during the year and that 150,100 direct labor hours would be worked. By how much was manufacturing overhead overallocated or underallocated for the year? (Round intermediary calculations to the nearest cent.)

• A)$56,400 overallocated
• B)$56,400 undererallocated
• C)$108,900 underallocated
• D)$108,900 overallocated