7. [Answer Only) Seon Company started operation in September this year. The company has initiated the production of three products, and it has accumulated direct costs and direct labor hours as incurred as follows: Direct materials cost Direct labor cost Direct labor hours Airplane $200,000 $100,000 100h Helicopter $500,000 $150,000 150h Aircraft $300,000 $150,000 150h The company uses a normal costing system in which overhead costs are allocated on the basis of direct labor hours. The budget for September is $700,000 for manufacturing overhead costs and 500 hours for direct labor hours. Actual manufacturing overhead cost incurred during September is $500,000. After allocating manufacturing overhead using a normal costing system, how much of the manufacturing overhead was over- or under-allocated? 1 $60,000, under-allocated 2 $60,000, over-allocated 3 0 (no over- or under-allocation) 4 $100,000, under-allocated 5 $100,000, over-allocated