Howard Corporation Has a Job Order Costing System

question 35

Multiple Choice

Howard Corporation has a job order costing system. The following debits (credits) appear in the firm's work in process account for the month of June:
Overhead is applied at 90 per cent of direct labour cost. There is only one job still in process at the end of June, and this job has been charged with $2250 factory overhead. What was the amount of direct materials charged to that job?

• A) $2250
• B) $2500
• C) $4250
• D) $9000