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ABC Company uses job-order costing and has assembled the following cost data for the production and assembly of item X:
Direct manufacturing labor wages...........................................$35,000
Direct material used.............................................................70,000
Indirect manufacturing labor....................................................4,000
Utilities...............................................................................400
Fire insurance........................................................................500
Manufacturing overhead applied..............................................11,000
Indirect materials..................................................................6,000
Depreciation on equipment..........................................................600
Based on the above cost data, the manufacturing overhead for item X is:
a. $500 over allocated.
b. $600 under allocated.
c. $500 under allocated
d. $600 over allocated
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