All of the following would be classified as product costs except:

A. Property taxes on production equipment

B. Insurance on factory machinery

C. Salaries of the advertising staff

D. Wages of machine operators

McDonnell Industries estimated manufacturing overhead for the year at $290,000.

Manufacturing overhead for the year was underapplied by $12,000. The company applied

$235,000 to Work in Process. The amount of actual overhead would have been:

A. $247,000.

B. $278,000.

C. $223,000.

D. None of these.