ABC Companies made the following projections (estimates) for 2020:

Indirect manufacturing costs $ 200,000

Direct labor hours 25,000

The company used 5,000 hours of direct labor. This uses normal costing and determines the allocation rate (predetermined overhead rate ) based on the number of direct labor hours. The company incurred $ 38,000 of manufacturing overhead during that month.

How much are the manufacturing overhead allocated during that month?

• a.$ 100,000.

• b.$200,000.

• c.$ 40,000.

• d.$ 38,000.