Marty's Metal Shop Uses a Job Order Cost System

Multiple Choice

Marty's Metal Shop uses a job order cost system.It applies overhead to jobs at a rate of 175% of direct labor costs.Job No.2617 required $800 in direct labor costs.The job was initially budgeted to require $850 in direct labor costs.Overhead applied to Job No.2617 during the period amounted to:

A) $850.
B) $1,400.
C) $1,275.
D) $1,487.50.