The Bristol Company Uses a Job-Order Cost System In the Previous Question Overhead Is Charged to Production at Data

Multiple Choice

The Bristol Company uses a job-order cost system. The following data were recorded for June: $\begin{array}{lrr}& \text {June 1 } && \text {Added During June } \\ &\text {Work in Process } & \text { Direct} & \text {Direct}\\\\\end{array}$
$\begin{array}{lrr}\text { Job Number} &\text { Stock }& \text { Materials }&\text { Labour }\\235 & £ 2,500 & £ 600 &£ 400 \\236 &£ 1,500 & £ 800 & £ 1,000 \\237 & £ 1,000 & £ 1,200 & £ 1,750 \\238 & £ 800 & £ 1,500 &£ 2,250 \end{array}$


In the previous question overhead is charged to production at 80% of direct materials cost. Jobs 235, 237, and 238 were completed during June and transferred to finished goods. Jobs 235 and 238 have been delivered to customers.
Assume that the company wants to recalculate the overhead rate and now wants to charge overhead to production at 75% of direct material cost. Bristol's Work in Process Stock balance on June 30 would change to:

A) £4,100.
B) £3,900.
C) £3,300.
D) £9,450.