[Solved] Dillon Company applies manufacturing overhead to jobs using a predetermined overhead rate of 75% of direct labor cost. Any under

Dillon Company applies manufacturing overhead to jobs using a predetermined overhead rate of 75% of direct labor cost. Any under or overapplied overhead cost is closed out to Cost of Goods Sold at the end of the month. During May, the following transactions were recorded by the company:

Raw materials (all direct materials):Purchased during the month $38,000Used in production $35,000Labor:Direct labor hours worked during the month 3,150Direct labor cost incurred $30,000Manufacturing overhead cost incurred (total) $24,500Inventories:Raw materials (all direct), May 31 $8,000Work in process, May 1 $9,000Work in process, May 31 $12,000**Contains $4,400 in direct labor cost.92. The balance on May 1 in the Raw Materials inventory account was:A) $11,000B) $5,000C) $7,000D) $9,00093. The amount of direct materials cost in the May?

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