Assume a company reported the following information for this year: Budgeted (estimated) production 80,000 units Budgeted sales 80,000 units Production capacity 100,000 units Selling price $ 25 per unit Variable manufacturing cost $ 12 per unit Estimated total manufacturing overhead cost (all fixed) $ 700,000 Selling and administrative expenses (all fixed) $ 250,000 Beginning inventories $ 0 Using a predetermined overhead rate based on capacity with units produced as the allocation base, the closest to:

Multiple Choice

$230,000

$175,000

$210,000

$180,000