Dillon Corporation Applies Manufacturing Overhead to Jobs Using a Predetermined

Multiple Choice

Dillon Corporation applies manufacturing overhead to jobs using a predetermined overhead rate of 75% of direct labor cost.Any under or overapplied manufacturing overhead cost is closed out to Cost of Goods Sold at the end of the month.During May,the following transactions were recorded by the company: The amount of direct materials cost in the May 31 Work in Process inventory account was:

A) $7,600
B) $2,000
C) $6,300
D) $4,300