Factory overhead cost is?

Use the following information to answer the question below

Cost of raw materials available—— 32,000
Manufacturing wages —–10,000
Factory expenses—–5,000
Royalty——-3,000
Factory rent ——2,000
Depreciation of plant and machinery—- 5,000
closing stock of raw materials——– 3,000

A. $25,000
B. $415,000
C. $12,000
D. $7,000

Correct Answer:

Option C – $12,000