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:

ActivityCostActivity BaseProduction setup$250,000Number of setupsMaterial handling150,000Number of partsGeneral overhead80,000Number of direct labor hours

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

Product AProduct BNumber of setups100300Number of parts40,00020,000Number of direct labor hours8,00012,000

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

a.$162,500

b.$32,000

c.$224,000

d.$194,500