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Question - Tracey Inc. applies overhead to production at a predetermined rate of 90% based on direct labor cost. Job No. 130, the only job still in process at the end of August, has been charged with manufacturing overhead of $5,400. What was the amount of direct materials charged to Job 130 assuming the balance in Work in Process inventory?
a. $21,000.
b. $4,860.
c. $9,600.
d. $6,000.
e. $10,740.
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