Pigot Corporation uses job costing and has two production departments, M and A. Budgeted manufacturing costs for the year are as follows: Dept. MDept. ADirect materials$700,000 $100,000 Direct labor 200,000  800,000 Factory overhead 600,000  400,000 The actual direct materials and direct labor costs charged to Job. No. 432 during the year were as follows:   Direct materials   $25,000 Direct labor:      Department M$8,000    Department A 12,000  20,000 Pigot applies manufacturing overhead to production orders on the basis of direct labor cost using departmental rates predetermined at the beginning of the year based on the annual budget. The total cost associated with Job. No. 432 for the year should be:

A. $65,000.
B. $50,000.
C. $55,000.
D. $75,000.


Answer: D

Business

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