Diamond Design Company Makes Custom Chairs for Individual Customers

Multiple Choice

Diamond Design Company makes custom chairs for individual customers.On September 1, there was one job in process, Job 243, with a cost of $2,000.Jobs 244, 245, and 246 were started during the month of September.Data on costs added during the month are as follows:
Overhead is applied to production at the rate of 60% of direct labor cost.Job 245 was completed on September 14 and the client was billed at cost plus 40%.All other jobs remained in process.

If selling and administrative expenses for the month of September equaled $ 1,000, what is operating income for the month of September?

A) $14,00
B) $3,152
C) $5,345
D) $2,000