Arabica Manufacturing uses a predetermined overhead allocation rate based on a percentage of
direct labor cost. At the beginning of 2015, Arabica estimated total manufacturing overhead costs
at $1,050,000 and total direct labor costs at $840,000. In June, 2015, Arabica completed Job 511. The
details of Job 511 are shown below.
Direct materials cost $27,500
Direct labor cost $13,000
Direct labor hours 400 hours
Units of product produced 200
How much was the total job cost of Job 511?
A) $50,900 B) $40,500 C) $56,750 D) $74,875
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