Loraine Company Applies Manufacturing Overhead to Jobs Using a Predetermined

Multiple Choice

Loraine Company applies manufacturing overhead to jobs using a predetermined overhead rate of 70% of direct Labour cost. Any under- or overapplied overhead cost is closed to Cost of Goods Sold at the end of the month. During August, the following transactions were recorded by the company:
-The Cost of Goods Manufactured for August was:

A) £69,600.
B) £69,500.
C) £76,900.
D) £84,500.