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Oh-To-Tec uses normal costing. Factory overhead is applied to production at a predetermined rate of 200% of direct-labour cost. Any over or under-applied factory

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Oh-To-Tec uses normal costing. Factory overhead is applied to production at a predetermined rate of 200% 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 for October: A transmission change job was started and completed during October. This was the only job during the month Direct materials used: transmission replacement and oil totaled $1,000 Total direct labour paid for the job is $800 Total actual factory overhead was $1,800 for the month Oh-To-Tec usually sells the job at 150% markup Calculate the gross profit that would show in the financial statements for October.

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