Reference no: EM132951846
Question - The following information was gathered for the Tutu Corporation for the most recent year. Manufacturing overhead is allocated using direct labor hours.
Estimated direct labor hours 67,000
Actual direct labor hours? 72,000
Estimated manufacturing overhead costs? $1,541,000
Actual manufacturing overhead costs? $1,578,000
By how much is manufacturing overhead over or? underallocated?
A. ?$78,000 overallocated
B. ?$78,000 underallocated
C. ?$37,000 underallocated
D. ?$37,000 overallocated