The normal capacity of Noel Company is 4,000 units per month. At this volume, budgeted fixed and variable factory overhead are $16,000 and $20,000, respectively. In May, actual production was 4,200 units and actual overhead incurred was $37,900.
What was the amount of factory overhead allowed for the actual level of production in May?
a. $36,000
b. $36,800
c. $37,000
d. $37,800