Door Company estimated manufacturing overhead costs for 2009 at $378,000. The

predetermined manufacturing overhead rate was based on 105,000 estimated direct labor hours.
Actual direct labor hours for 2009 totaled 110,000.

The manufacturing overhead account showed
debit entries totaling $394,000. For the year, was overhead overallocated or underallocated and
by how much?
A) $16,000 overallocated B) $2,000 overallocated
C) $2,000 underallocated D) $16,000 underallocated

B

Business

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