Success Co worked on four jobs during its first year of operation: nos. 401, 402, 403, and 404. Nos. 401 and 402 were completed by year-end, and no. 401 was sold at a profit of 40% of cost. A review of job no. 403’s cost record revealed direct material charges of $20,000 and total manufacturing costs of $30,000. If Treetops applies overhead at 150% of direct labor cost, the overhead applied to job no. 403 must have been: A. $0. B. $1,500. C. $4,000. D. $3,333. E. $6,000.Success Co worked on four jobs during its first year of operation: nos. 401, 402, 403, and 404. Nos. 401 and 402 were completed by year-end, and no. 401 was sold at a profit of 40% of cost. A review of job no. 403’s cost record revealed direct material charges of $20,000 and total manufacturing costs of $30,000. If Treetops applies overhead at 150% of direct labor cost, the overhead applied to job no. 403 must have been: A. $0. B. $1,500. C. $4,000. D. $3,333. E. $6,000.
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