Empire Ltd. is a paper production company based in Northamptonshire, UK. The company’s actual and budgeted figures for Job #419 include the following:

If the company absorbs overheads based on direct labor hours, what is the over- or underallocated manufacturing overhead for the job?
a. £1,350 underallocated 

b. £1,150 underallocated
c. £2,693 overallocated 

d. £4,007 overallocated

Transcribed Image Text:

Direct labor hours Direct manufacturing labor Machine hours Units produced Manufacturing overhead Budgeted 800 £ 1,500 1,200 50 £20,000 Actual 700 £ 1,507 1,100 62 £18,850