The Work in Process Inventory account of a manufacturing company has a $3500 debit balance. The company applies overhead using direct labor cost. The cost sheet of the only job still in process shows direct material cost of $1580 and direct labor cost of $860. Therefore, the amount of applied overhead is:

A. $1060.
B. $2440.
C. $1920.
D. $2640.
E. $860.


Answer: A

Business

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