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Pkroblem 1: Treetops worked on four jobs during its first year of operation: nos. 401, 402, 403, and 404. Nos. 401 and 402 were completed by year-end, and no. 401 was sold at a profit of 40% of cost. A review of job no. 403's cost record revealed direct material charges of $20,000 and total manufacturing costs of $25,000. If Treetops applies overhead at 150% of direct labour cost, the overhead applied to job no. 403 must have been:
A. $0.B. $2,000.C. $3,000.D. $3,333.E. $5,000.
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