Please note that there is an error in the T-account presentation given in the graders report.

The actual
overhead for the period is $28,000 (in the debit side) and the allocated overhead for the period is
$250,000 (credit side). Since the credit side is more than the debit-side, the balance should appear in the
credit side. Think about it, overhead was over-allocated, that means the MOH account should have a
credit balance. When we clear the MOH account (close the variance), our entry should bring down the
COGS (credit COGS), and debit the MOH account (debiting the MOH account with the variance will offset
the credit balance in the MOH account, making the MOH balance a zero.)

So, the correct MOH T-account should have been like this:

Manufacturing Overhead Account

Indirect Material Inventory 7,500 WIP 250,000
Indirect Labor 5,000
Other Manufacturing OH 16,000
Balance 221,500