Lowden Company has an overhead application rate of 160% and allocates overhead based on direct material cost. During the current period, direct labor cost is $61,000 and direct materials used cost $79,000. Determine the amount of overhead Lowden Company should record in the current period.
a) $49,375.
b) $38,125.
c) $79,000.
d) $126,400.
e) $61,000