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, $7,700.

Job 406, material X, $3,700; material Y, $6,700.

Job 407, material X, $7,700; material Y, $3,900.

For general factory use: materials A, B, and C, $3,000.

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

Job 405		14,000	3,700	hours
Job 406		14,700	4,300	hours
Job 407		8,700	2,600	hours
Indirect labor		4,400

(3) Other information:

Factory paychecks for $37,400 were issued during the month.

Various factory overhead charges of $20,100 were incurred on account.

Depreciation of factory equipment for the month was $6,100.

Factory overhead was applied to jobs at the rate of $3.90 per direct labor hour.

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

Selling and administrative costs were $2,800.

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

If Job 406 was sold on account for $48,500, how much gross profit would be recognized for the job?

Multiple Choice

$5,000.

$6,630.

$22,700.

$41,870.