Arabica Manufacturing Company uses a predetermined manufacturing overhead rate based on a percentage of direct labor cost. At the beginning of 2012, they estimated total manufacturing overhead costs at $1,050,000, and they estimated total direct labor costs at $840,000. In June, 2012, Arabica completed job number 511. Job stats are as follows:

Direct materials cost........................................$27,500

Direct labor cost..............................................$13,000

Direct labor hours........................................400 hours

Units of product produced:.........................200 crates

How much was the total job cost?

A) $40,500

B) $56,750

C) $50,900

D) $74,875

Answer rating: 100% (QA)

B Estimated manufacturing overhead costs for the year 1 050 000 Estimated total View the full answer