Detailed Answer
Correct answer: (D)
This question is actually fairly simple and just requires that we make 3 allocations of overhead.
Overhead is allocated based on direct labor, raw materials and machine hours. These calculations, in this
order, are: $8,000 x 100% = $8,000; $2,000 x 20% = $400; 140 x $117 = $16,380. These total $24,780,
but this is not the correct answer. This is the amount of overhead, but the question asks for total costs. This
means that we need to include direct labor ($8,000) and raw materials ($2,000). The total costs are $34,780.