The Owens Company Uses the Machine Hour Method of Applying

Multiple Choice

The Owens Company uses the machine hour method of applying factory overhead to production.The budgeted factory overhead last year was $200,000,and there were 40,000 machine hours budgeted.Job 84 was started and completed during the period.Direct materials costing $900 were incurred.Twenty-five direct labor hours were worked at a cost of $350,and 40 machine hours were incurred.What was the cost of Job 84?

A) $1,450
B) $1,375
C) $1,250
D) $1,290