Bosch Company Uses a Job Costing System

Bosch Company uses a job costing system. Bosch Company estimated manufacturing overhead costs for the year at $352,000, based on 160,000 estimated direct labour hours. Actual direct labour hours for the year totaled 198,000. Actual manufacturing overhead for the year was $395,300.

By how much was manufacturing overhead overallocated or underallocated for the year?

A) $43,300 overallocated
B) $40,300 underallocated
C) $40,300 overallocated
D) $43,300 underallocated