Use the Information Below to Answer the Following Question(s)

Multiple Choice

Use the information below to answer the following question(s) .
Cabaret Corporation had actual manufacturing overhead costs for the most recent year of $27,500. Manufacturing overhead is allocated using a predetermined manufacturing overhead rate of $1.75 per direct labour hour. Direct labour cost is $18 per hour. At the end of the year, Cabaret Corporation found it had overallocated manufacturing overhead by $1,000.
-How much manufacturing overhead was allocated in total during the year at Cabaret Corporation?

A) $28,500
B) $26,500
C) $27,500
D) $1,000