11 J k Loraine Company applies manufacturing overhead to jobs using a predetermined overhead rate of 70% of direct labor cost. Any underapplied or overapplied overhead cost is closed to Cost of Goods Sold at the end of the month. During August, the following transactions were recorded by the company: $30,000 $31.000 Raw materials (all direct materials Purchased during the month.................... Used in production.... Labor Direct labor hours worked during the month Direct labor cost incurred. Indirect labor cost incurred Manufacturing overhead costs incurred (total) Inventories Raw materials (all direct) August 31 Work in process, August 1. Work in process. August 31 3.000 $27.000 $6,000 $19.000 $8.000 $7.600 SI5.000 *contains $6,000 of direct labor cost 27. (5 points) The Cost of Goods Manufactured for August was: A. $69,600 B. $69,500 C. $76,900 D. $84,500