Better Products Company Manufactures Insulation and Applies Manufacturing Overhead Costs

Multiple Choice

Better Products Company manufactures insulation and applies manufacturing overhead costs to production at a budgeted indirect-cost rate of $18 per direct labor-hour. The following data are obtained from the accounting records for October 2018:

The actual amount of manufacturing overhead costs incurred in October 2018 totals ________.

A) $277,500
B) $116,000
C) $162,000
D) $123,000