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The following account balances at the beginning of January were selected from the general ledger of Crispy Chips Manufacturing​ Company:
Work in process inventory $5,980 $0
Raw materials inventory $2,320 $28400
Finished goods inventory $14,340 $40500
Additional​ data:
1. Actual manufacturing overhead for January amounted to $78,200
2. Total direct labor cost for January was $125,000
3. The predetermined manufacturing overhead rate is based on direct labor cost. The budget for the year called for $120,000 of direct labor cost and $78,000 of manufacturing overhead costs.
4. The only job unfinished on January 31 was Job No.​ 151, for which total direct labor charges were $3,200 (16 direct labor​ hours) and total direct material charges were $1,720.
5. Cost of direct materials placed in production during January totaled $62,250 There were no indirect material requisitions during January.
6. January 31 balance in raw materials inventory was $3,100
7. Finished goods inventory balance on January 31 was $17,420
Has manufacturing overhead been overallocated or underallocated and by what amount as of January​ 31?
a. Overallocated by $200
b. Underallocated by $200
c. Underallocated by $3,250
d. Overallocated by $3,050
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