Trenton Worked on Four Jobs During Its First Year of Operation

question 17

Multiple Choice

Trenton worked on four jobs during its first year of operation: nos. 401, 402, 403, and 404. A review of job no. 403's cost record revealed direct material charges of $40,000 and total manufacturing costs of $50,000. If Trenton applies overhead at 150% of direct labor cost, the overhead applied to job no. 403 must have been:

• A) $0.
• B) $6,000.
• C) $4,000.
• D) $3,333.
• E) $5,000.

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