Answer:
Option (b) is correct.
Explanation:
Manufacturing overhead has an overallocated balance = $7,500
Cost of goods sold = $135,000
The overallocated manufacturing overhead will be simply added to the cost of goods sold.
After adjusting for the overallocated manufacturing overhead,
Cost of goods sold:
= cost of goods sold + overallocated balance of manufacturing overhead
= $135,000 + $7,500
= $142,500
