$78,000
-$78000
-$8000
$8,000
Answer is Wrong!
Answer is Right!
The correct answer is $\boxed{\text{C. }-\$8,000}$.
Underallocated indirect costs are the indirect costs that are not covered by the indirect cost allocation. In this case, the actual indirect costs are $35,000, and the indirect costs allocated are $43,000. This means that the indirect costs are underallocated by $8,000.
Option A is incorrect
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