Barefoot running company's work in process inventory on june 1 has a balance of $22,900 representing job no. 265. during june, $50,700 of direct materials were requisitioned for job no. 265 and $35,500 of direct labor cost was incurred on job no. 265. manufacturing overhead is allocated at 130% of direct labor cost. actual manufacturing overhead costs incurred in june amounted to $41,300. no new jobs were started during june. job no. 265 is completed on june 28. is manufacturing overhead overallocated or underallocated for the month of june? by how much?

$4,850 under allocated

Explanation:

Giving the following information:

Manufacturing overhead is allocated at 130% of direct labor cost.

The actual manufacturing overhead costs incurred in June amounted to $41,300.

Job No. 265:

Direct labor= $35,500

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base= 1.3*35500= $46,150

Over/under allocation= real MOH - allocated MOH= 46150 - 41300= $4,850 under allocated

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