Hamilton Company uses job order costing. Factory overhead is applied to production at a predetermined rate of 150% of direct-labour cost. Any over or under-applied factory overhead is closed to the cost of goods sold account at the end of each month. Additional information is available as follows: Job 101 was the only job in process at January 31, 2002, with costs of $4,000 for direct materials and $2,000 for direct labour. Jobs 102, 103, and 104 were started during February. Direct materials requisitions for February totaled $26,000. Total Direct-labour cost of $20,000 was incurred for February. Total Actual factory overhead was $32,000 for February. The only job still in process at February 28, 2002, was Job 104, with costs of $2,800 for direct materials and $1,800 for direct lab

1. The cost of goods manufactured for February 2002 was: (a) $77,700 (b) $78,000 (c) $79,700 (d) $85,000 (e) None of the above