The Following Account Balances at the Beginning of January Were

Multiple Choice

The following account balances at the beginning of January were selected from the general ledger of Fresh Bagel Manufacturing Company: Additional data:
1) Actual manufacturing overhead for January amounted to $65,500.
2) Total direct labor cost for January was $64,000.
3) The predetermined manufacturing overhead rate is based on direct labor cost. The budget for the year called for $255,000 of direct labor cost and $382,500 of manufacturing overhead costs.
4) The only job unfinished on January 31 was Job No. 151, for which total direct labor charges were $6100 (1700 direct labor hours) and total direct material charges were $15,000.
5) Cost of direct materials placed in production during January totaled $123,900. There were no indirect material requisitions during January.
6) January 31 balance in raw materials inventory was $35,400.
7) Finished goods inventory balance on January 31 was $35,000.
Has manufacturing overhead been overallocated or underallocated and by what amount as of January 31?

A) $30,500 overallocated
B) $30,500 underallocated
C) $15,100 overallocated
D) $15,100 underallocated