Axe Applies Overhead to Jobs at a Predetermined Rate of 80

Multiple Choice

Axe applies overhead to jobs at a predetermined rate of 80% of direct Labour cost. Job No. 9, the only job still in process at the end of March, has been charged with direct Labour of £1,000. The amount of direct materials charged to Job No. 9 was

A) £12,000.
B) £ 4,400.
C) £ 2,600.
D) £ 1,500.