Mannitou Company made the following predictions for 2016: $\begin{array}{lr}
\text { Factory overhead costs } & \$ 300,000 \
\text { Direct labor hours } & 50,000 \text { hours } \
\text { Machine hours } & 100,000 \text { hours }
\end{array}$ Job A2 (which was started and completed in June) used 3,000 direct labor hours, 2,000 machine hours, and $57,000 of prime costs.
If factory overhead is applied based on direct labor hours, the cost of Job A2 for the Mannitou Company is
A)$60,000.
B)$75,000.
C)$63,000.
D)$66,000.

Question

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The Answer of Mannitou Company made the following predictions for 2016: $\begin{array}{lr}
\text { Factory overhead costs } & \$ 300,000 \
\text { Direct labor hours } & 50,000 \text { hours } \
\text { Machine hours } & 100,000 \text { hours }
\end{array}$ Job A2 (which was started and completed in June) used 3,000 direct labor hours, 2,000 machine hours, and $57,000 of prime costs.
If factory overhead is applied based on direct labor hours, the cost of Job A2 for the Mannitou Company is
A)$60,000.
B)$75,000.
C)$63,000.
D)$66,000.

Mannitou Company Made the Following Predictions for 2016 Job A2 (Which Was Started and Completed in June) Used