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

Question 110

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Mannitou Company made the following predictions for 2016:  Factory overhead costs $300,000 Direct labor hours 50,000 hours  Machine hours 100,000 hours \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.

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