A company uses a standard costing system. The production budget for year 1 was based on 200,000 units of output. Each unit requires two standard hours of manufacturing labor for completion. Total overhead was budgeted at $900,000 for the year, and the budgeted fixed overhead rate was $1.50 per direct manufacturing labor hour. Both variable and fixed overheads are allocated to the product based on direct manufacturing labor hours. The actual data for year 1 are as follows:
Actual production: 198,000 units

Actudal direct labor hours 440,000 direct labor hours

Actual variable manufacturing overhead $352,000

Actual fixed manufacturing overhead $575,000

The standard hours allowed for actual production for the year total:

A.

247,500

B.

396,000

C.

400,000

D.

495,000