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Question - The Romanowksi Manufacturing Company uses a plant wide overhead rate to allocate overhead with direct labor hours as its cost driver. The budgeted direct labor was $750,000 with an hourly rate of $25. The budgeted overhead spending was $3,000,000. During the first month of the year, Romanowski manufactured 100 pieces of product A using 2,500 direct labor hours. What was the amount of overhead allocated to Product A?
A. $210,000
B. $62,500
C. $225,000
D. $250,000
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