The Omega Company Manufactures Customized Motors on a Job-Order Basis

Multiple Choice

The Omega Company manufactures customized motors on a job-order basis. Job 492 is an order for 100 units. It requires the following: $$\begin{array} { l c } \text { direct materials } & \$ 3,000 \\\text { direct labor } ( \$ 10 / h r ) & 1,000 \\\text { overhead } ( 150 \% \text { DL } \$ ) & 1,500\end{array}$$
After inspection, 2 units required rework which required 8 additional direct labor hours and $60 of materials.
If the rework is considered abnormal spoilage, what is the cost of job 492?

A) $5,500
B) $5,760
C) $3,140
D) $5,640