Actual manufacturing overhead for 2009 amounts to $102,500, allocated manufacturing overhead for 2009 amounts to $98,700. By how much is manufacturing overhead over/underallocated?

Question

Quizplus · Accepted Answer

The manufacturing overhead is underallocated by $3,800 because the actual manufacturing overhead ($102,500) is more than the allocated manufacturing overhead ($98,700), indicating that not enough overhead was allocated.

Actual Manufacturing Overhead for 2009 Amounts to $102,500, Allocated Manufacturing