Poole Company applies manufacturing overhead (MOH) using a pre-determined overhead rate (POHR) based on machine hours (MHs) with the following information for the period:

MHs estimated for the period 250,000 MHs actually incurred in the period 258,000 POHR for the period $ 5.50 per MH Actual MOH for the period $ 1,410,000

The activity for the period was significantly less than Poole's capacity of 275,000 MHs, and so the CEO has asked about the impact of using a POHR based on capacity. If this is done, how much lower will the company's applied MOH be versus the traditional method?

A. $ 87,720 B. $ 129,000 C. $ 96,164 D. $ 85,000 E. None of the above