The Work in Process Inventory Account of a Manufacturing Company

Multiple Choice

The Work in Process Inventory account of a manufacturing company that uses an overhead rate based on direct labor cost has a $3,200 debit balance after all posting is completed. The cost sheet of the one job still in process shows direct material cost of $1,400 and direct labor cost of $800. Therefore, the amount of the applied overhead is:

A) $800.
B) $1,800.
C) $2,400.
D) $2,200.
E) $1,000.