Mannitou Company Made the Following Predictions for 2018 Job A2 (Which Was Started and Completed in June) Used

question 63

Multiple Choice

Mannitou Company made the following predictions for 2018: $\begin{array}{lr}\text { Factory overhead costs } & \$ 300,000 \\\text { Direct labor hours } & 50,000 \text { hours } \\\text { Machine hours } & 100,000 \text { hours }\end{array}$ 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 machine hours, the cost of Job A2 for the Mannitou Company is

• A)$69,000.
• B)$75,000.
• C)$63,000.
• D)$66,000.

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