Boxer Industries worked on four jobs during its first year of operation: nos. 401, 402, 403, and 404. A review of job no. 403's cost record revealed direct material charges of $40,000 and total manufacturing costs of $50,000. If Boxer applies overhead at 150% of direct labor cost, the overhead applied to job no. 403 must have been:
A) $0.
B) $6,000.
C) $4,000.
D) $3,333.
E) $5,000.

Question

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The Answer of Boxer Industries worked on four jobs during its first year of operation: nos. 401, 402, 403, and 404. A review of job no. 403's cost record revealed direct material charges of $40,000 and total manufacturing costs of $50,000. If Boxer applies overhead at 150% of direct labor cost, the overhead applied to job no. 403 must have been:
A) $0.
B) $6,000.
C) $4,000.
D) $3,333.
E) $5,000.

Boxer Industries Worked on Four Jobs During Its First Year