The Concrete Rose Has Been a Staple of Their Community

Multiple Choice

The Concrete Rose has been a staple of their community for several decades. As the owner retires and promotes his daughter Moira to CEO of this successful music venue, the management staff has prepared suggestions for improvements. At the top of their list is the implementation of Time-Driven Activity-Based Costing (TDABC) instead of their current traditional costing methods. With this new change, the management team believes they can optimize their earnings. They compiled the following data about their identified key activities:
The Concrete Rose spent $389,500 to operate the ticketing department, and these resources created a capacity of 495,000 minutes. If actual costs incurred to operate the activities are compared to the allocated costs, what is the difference, and is it over- or underallocated? (If required, round calculations to two decimal places.)

A) $47.96 overallocated
B) $47.96 underallocated
C) $1,502.04 overallocated
D) $1,502.04 underallocated