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Arabica Manufacturing Company Uses a Predetermined Manufacturing Overhead Rate Based

Question 14

Multiple Choice

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 \begin{array} { l l } \text { Direct materials cost } & \$ 27,500 \\\text { Direct labor cost } & \$ 13,000 \\\text { Direct labor hours } & 400 \text { hours } \\\text { Units of product produced: } & 200 \text { crates }\end{array}
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How much was the cost per unit (cost per crate) of finished product? (Please round to the nearest cent.)


A) $374.38
B) $202.50
C) $254.50
D) $283.75

Correct Answer:

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