For 2018, Franklin Manufacturing Uses Machine-Hours as the Only Overhead

Multiple Choice

For 2018, Franklin Manufacturing uses machine-hours as the only overhead cost-allocation base. The estimated manufacturing overhead costs are $340,000 and estimated machine hours are 40,000. The actual manufacturing overhead costs are $450,000 and actual machine hours are 50,000. What is the difference between the budgeted and the actual manufacturing overhead using job costing? (Round interim and the final answer to the nearest cent.)

A) $2.75
B) $2.20
C) $0.50
D) $2.25