Micro Enterprises planned to produce 120,000 lerts per year. Annual overheads, of which 32.5% are variable, are estimated at $320,400. Each lert takes 1.2 machine hours and 3 labor hours to produce. The firm allocates overhead by direct labor hours.In February, when 11,000 lerts were produced, 32,000 direct labor hours were recorded and expenditures on overheads amounted to $29,650. Which is true for this month?

		A. The overhead absorption rate is $0.9266 per DLH
		B. Overhead applied is $29,370
		C. Overhead applied is $29,650
		D. Overhead applied is $28,480
		E. None of the above