The following selected data were taken from the books of the Owens O-Rings Company. The company uses job costing to account for manufacturing costs. The data relate to April operations. (1) Materials and supplies were requisitioned from the stores clerk as follows:

Job 405, material X, $8,700.

Job 406, material X, $4,700; material Y, $7,700.

Job 407, material X, $8,700; material Y, $4,900.

For general factory use: materials A, B, and C, $4,000.

(2) Time tickets for the month were chargeable as follows:

Job 405	$	22,000	4,700	hours
Job 406		15,700	5,300	hours
Job 407		9,700	3,600	hours
Indirect labor		5,400

(3) Other information:

Factory paychecks for $38,400 were issued during the month.

Various factory overhead charges of $21,100 were incurred on account.

Depreciation of factory equipment for the month was $7,100.

Factory overhead was applied to jobs at the rate of $4.90 per direct labor hour.

Job orders completed during the month: Job 405 and Job 406.

Selling and administrative costs were $3,800.

Factory overhead is closed out only at the end of the year.

If Job 406 was sold on account for $58,500, how much gross profit would be recognized for the job?

Multiple Choice

• a) $54,070.

• b) $4,430.

• c) $28,700.

• d) $3,000.