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Arabica Manufacturing Uses a Predetermined Overhead Allocation Rate Based on a Percentage

Question 105

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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. Job stats are as follows: 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. Job stats are as follows:   How much was the total job cost of Job 511? A) $40,500 B) $56,750 C) $50,900 D) $74,875 How much was the total job cost of Job 511?


A) $40,500
B) $56,750
C) $50,900
D) $74,875

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