10. Following are the budgeted costs for a manufacturing plant producing custom products:

Materials (70% direct and 30% indirect) $15,000

Labour (60% direct and 40% indirect) 12,000

Supervision 5,000

Amortization 10,000

Utilities 4,860

Total $46,860

The company uses a normal costing system and overhead is allocated on the basis of direct labour cost. If actual direct labour cost was $7,500, the overhead allocated was

a. $29,160.

b. $20,688.

c. $30,375.

d. $48,813.

e. None of the above.