Erickson Company Made the Following Predictions for the Current Year

question 129

Multiple Choice

Erickson Company made the following predictions for the current year:
$$\begin{array} { l r } \text { Factory averhead costs } & \text {\$ 300,000 } \\\text { Direct labour hours } & 50,000 \text { hours } \\\text { Machine hours } & 100,00 \text { hours }\end{array}$$ Job A2 (which was started and completed in May) used 3,000 direct labour hours,2,000 machine hours,and $57,000 of prime costs.
-Refer to the figure.If factory overhead is applied based on machine hours,what is the cost of Job A2 for the Erickson Company?

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

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