Bear Company uses job-order costing and has assembled the following cost data for the production and assembly of item X:Direct manufacturing labor wages$38,000Direct material used85,000Indirect manufacturing labor3,700Utilities420Fire insurance510Manufacturing overhead applied9,000Indirect materials6,400Depreciation on equipment500Based on the above cost data, the manufacturing overhead for item X is:A.$ 2 comma 530 underallocated.B.$ 500 overallocated.C.$ 500 underallocated.D.$ 2 comma 530 overallocated.
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