Overhead cost is applied to units based on direct labour-hours. For April, total overhead cost was budgeted at $80,000 based on a denominator activity level of 20,000 direct labour-hours for the month. The standard cost card indicates that each unit of finished product requires 2 direct labour-hours. The following data are available for April's activity:
Numer of units produced 9,500
Direct labour-hours worked 19,500
Actual total overhead cost incurred $79,500
What amount of total overhead cost would have been applied to production for the month of April?
a. $76,000
b. $78,000
c. $79,500
d. $80,000