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Orange Corporation manufactures custom-made wallets. The following data pertains to Job GH7: Factory overhead is applied using a plant-wide rate based on direct labor hours.

Orange Corporation manufactures custom-made wallets. The following data pertains to Job GH7:

Factory overhead is applied using a plant-wide rate based on direct labor hours. Factory overhead was budgeted at $100,000 for the year, and the direct labor hours were estimated to be 25,000. Job GH7 consists of 60 units. What is overhead cost assigned to Job GH7?

a.$240

b.$400

c.$300

d.$160

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