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Problem 1: Eyelet Industries produces specialized laces for running shoes, hiking shoes, and work boots. Eyelet budgeted $112,500 for variable overhead and $45,000 for fixed overhead when the monthly planned activity was 7,500 process hours to produce 15,000 laces. Actual lace production was 15,400 laces and 7,680 process hours were used. If the company applies overhead using standard costing, how much overhead was applied during the month?
Multiple Choice Option 1: $157,500.
Option 2: $161,280.
Option 3: $161,700.
Option 4: $157,910.
Option 5: NONE OF THESE
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