Union Company Uses a Standard Cost Accounting System What Was the Total Amount of Overhead Applied to Work

Multiple Choice

Union Company uses a standard cost accounting system.The following overhead costs and production data are available for August:
$\begin{array}{|l|r|}\hline \text { Standard Fixed Overhead Rate } & \$ 1.00 \text { per hour } \\\hline \text { Standard Variable Overhead Rate } & \$ 4.00 \text { per hour } \\\hline \text { Denominator Activity } & 40,000 \text { hours } \\\hline \text { Actual Hours } & 39,500 \text { hours } \\\hline \text { Standard Hours Allowed for Output } & 39,000 \text { hours } \\\hline \text { Overapplied Overhead } & \$ 2,000 \\\hline\end{array}$
What was the total amount of overhead applied to work in process in August?

A) $195,000.
B) $197,000.
C) $197,500.
D) $199,500.