The Following Data Pertains to Lam Co

Multiple Choice

The following data pertains to Lam Co.'s manufacturing operations:
Additional information for the month of April:
Overhead is applied at $10 per direct labor hour.
For the month of April,cost of goods manufactured was:

A) $118,000.
B) $115,000.
C) $112,000.
D) $109,000.
$118,000 = $9,000 + ($42,000 + $18,000 - $15,000) + $30,000 + $40,000 - $6,000
Overhead incurred = overhead applied = ($30,000/$7.50) x $10 = $40,000