47. Before the year began, Milkway Manufacturing estimated that manufacturing overhead for the year would be
$175,000 and that 25,000 direct labor hours would be worked. Actual results for the year included the following:
Actual manufacturing overhead cost
Actual direct labor hours
$182,000
20,000
If the company allocates manufacturing overhead based on direct labor hours, the manufacturing overhead for the
year would have been
A. $42,000 overallocated.
B. $7,000 underallocated.
C. $7,000 overallocated.
D. $42,000 underallocated.