Tillman Corporation uses a job order cost system and has two production departments, M and A. Budgeted manufacturing costs for the year are:

	Dept. M	Dept. A
Direct materials	$700,000	$100,000
Direct labor	200,000	800,000
Manufacturing overhead	600,000	400,000

The actual material and labor costs charged to Job No. 432 during the year were as follows:

Direct material		$25,000
Direct labor:
Dept. M	$8,000
Dept. A	12,000
		20,000
		45,000

Tillman applies manufacturing overhead to production orders on the basis of direct labor cost using departmental rates predetermined at the beginning of the year based on the annual budget. The total annual manufacturing costs associated with Job No. 432 should be

Question 7 options:

A)

$50,000.

B)

$65,000.

C)

$75,000.

D)

$55,000.