Waterside Sports Equipment Company's work in process inventory on June 1 has a balance of $21,500 representing Job No. 151. During June, $52,000 of direct materials were requisitioned for Job No. 151 and $31,000 of direct labour cost was incurred on Job No. 151. Manufacturing overhead is allocated at 120% of direct labour cost. Actual manufacturing overhead costs incurred in June amounted to $42,000. No new jobs were started during June. Job No. 151 is completed on June 28.
Is manufacturing overhead overallocated or underallocated for the month of June at Waterside Sports Equipment Company? By how much?
◦ $4,800 overallocated
◦ $4,800 underallocated
◦ $16,167 underallocated
◦ $16,167 overallocated