Use the Following Information for the Next 5 Questions

Multiple Choice

Use the following information for the next 5 questions.
Mason, Inc. uses a standard costing system. Overhead costs are allocated based on direct labor hours. The standard variable overhead and fixed overhead rates are $1 and $5 per direct labor hour, respectively. Data relevant for the current period include:
-The purchase of direct materials would be recorded in direct materials inventory at

A) $540,000
B) $585,000
C) $600,000
D) $650,000