Cedar Company estimates its manufacturing overhead to be $700,000 and its direct labor costs to be $560,000 for Year 2. Cedar worked on the following three jobs for the year: Job Status Direct Labor Costs Job 2-1 Completed and sold $195,000; Job 2-2 Completed by not sold 325,000; and Job 2-3 In progress 130,000. Actual manufacturing overhead for Year 2 was $822,000. Manufacturing overhead is applied on the basis of direct labor costs. How much of the underapplied overhead should be allocated to finished goods? A. 2.850 B. 1,900 C. 4,750 D. 9,500
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