Miramar Industries manufactures two products: A and B. The manufacturing operation involves three overhead activitiesproduction setup, material handling, and general factory activities. Miramar uses activity-based costing to allocate overhead to products. An activity analysis of the overhead revealed the following estimated costs and activity bases for these activities:

Activity

Cost

Activity Base

Production setup

$250,000

Number of setups

Material handling

150,000

Number of parts

General overhead

80,000

Number of direct labor hours

Each product's total activity in each of the three areas are as follows:

Product A

Product B

Number of setups

100

300

Number of parts

40,000

20,000

Number of direct labor hours

8,000

12,000

What is the total overhead allocated to Product B using activity-based costing?

a. $135,000

b. $175,000

c. $285,500

d. $292,500