Bear Company uses job-order costing and has assembled the following cost data for the production and assembly of item X:

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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

$38,000

Direct material used

85,000

Indirect manufacturing labor

3,700

Utilities

420

Fire insurance

510

Manufacturing overhead applied

9,000

Indirect materials

6,400

Depreciation on equipment

500

Based 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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