Morgan Company Uses a Job Costing System

Morgan Company uses a job costing system. Morgan Company estimated manufacturing overhead costs for the year at $330,800, based on 60,200 estimated direct labor hours. Actual direct labor hours for the year totaled 75,800. Actual manufacturing overhead for the year was $385,200. By how much was manufacturing overhead overallocated or underallocated for the year? (Round intermediary calculations to the nearest cent.)

A) $31,700 overallocated
B) $31,700 underallocated
C) $54,400 overallocated
D) $54,400 underallocated