Spang Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data: Total machine-hours 20,000Total fixed manufacturing overhead cost$176,000Variable manufacturing overhead per machine-hour$2.20 Recently, Job P505 was completed with the following characteristics: Total machine-hours 200Direct materials$540Direct labor cost$7,200 The amount of overhead applied to Job P505 is closest to:
A. $2,200
B. $2,640
C. $1,760
D. $440
Answer: A
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