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 hours400 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
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