
Answer:
A. overallocated by​ $6,500
Explanation:
Indirect labor ​13,000
Plant facility rent ​30,000
Depreciation on plant machinery and equipment ​22,500
Total overhead: 65,500
applied overhead: $18 x 4000 hours = 72,000
we now compare both, the applied and actual:
72,000 > 65,500
As the applied is greater we overapplied we capitalized cost that didn't occur we must decrease the overhead.
72,000 - 65,500 = 6,500 overallocated