The Donaldson Company Uses a Job-Order Cost System Overhead Is Applied to Jobs at the Rate of 80

Multiple Choice

The Donaldson Company uses a job-order cost system. The following data were recorded for July: $\begin{array}{cccc}&&\text { Added During June }\\&\text {July 1}\\\\&\text { Work in Process}&\text { Direct}&\text { Direct }\\\text { Job Number } &\text { Stok} & \text { Materials } & \text { Labour } \\475 & £ 1,500 & £ 500 & £ 300 \\476 & £ 1,000 & £ 700 & £ 900 \\477 & £ 900 & £ 1,000 & £ 1,500 \\478 & £ 700 & £ 1,200 & £ 2,000\end{array}$
Overhead is applied to jobs at the rate of 80 percent of direct materials cost. Jobs 475, 477, and 478 were completed during July and transferred to finished goods. Jobs 475 and 478 have been delivered to the customer. Donaldson's Work in Process Stock balance on July 31 was:

A) £7,280.
B) £2,600.
C) £3,160.
D) £3,320.