1. Grey, Inc., uses a predetermined rate to apply overhead. At the beginning of the year, Grey budgeted its overhead costs at $400,000, direct labor hours at 100,000, and machine hours at 50,000. Actual overhead costs incurred were $390,250, actual direct labor hours were 102,000, and actual machine hours were 40,000.

   If the firm's PDOH rate uses machine hours as the cost driver, what is the total amount credited to the overhead account control account (that is, as overhead costs are applied and prior to any closing entries)?

   	a.	$408,000
   	b.	$320,000
   	c.	$487,812.50
   	d.	$284,558.82