Ditto Manufacturing Company uses a job-order costing system and applies overhead to production jobs with a predetermined rate based on direct labor dollars. Ditto provides the below information about the 2019 factory operations and explains that the company purchases 100% of its raw materials on account from vendor, Dawson Company and disposes of over/under applied overhead using the method we discussed in class.

Consider Ditto's Work-in-Process inventory balance reported at 12/31/2019. Assume further that at 12/31/2019 the company had a single job in process, job #202 that was started in 2019 and completed in early 2020. Per the job cost record, job #202 had $7,000 of direct materials requistioned and charged to it during 2019. How much direct labor was charged to job #202 in 2019?

	A.	$18,000
	B.	$9,800
	C.	$5,000
	D.	$21,000
	E.	$25,200

12/31/2019 $64,000 Reported Account Balances: Raw Materials Work in Process Finished Goods Accounts Payable, Dawson 12/31/2018 $55,000 31,500 132,000 14,000 ? 144,000 11,000 Other Data: Direct Materials Used Direct Labor Incurred Total Manufacturing Overhead Selling, General, and Administrative Cost of finished goods available for sale Sales Revenue 2019 Budgeted Actual $150,000 $172,000 230,000 225,000 322,000 350,000 180,000 150,000 915,000 825,300 980,000 1,200,000