The Mason Corporation budgeted overhead at $240,000 for the period for Department A based on a budgeted volume of 60,000 direct labor hours.  During the period, Mason started and completed Job B25, which incurred 200 labor hours at a cost of $2,200, and $5,000 of direct materials.  What was the cost of Job B25?
A. $7,400
B. $8,000
C. $7,250
D. $13,800

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Budgeted Overhead budgeted volume labour hours Overhead rate 240000... View the full answer