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 Direct labour cost Direct labour hours Units of product produced: $27,500 $13,000 400 hours 200 crates How much was the total job cost? a. $56,750 b. $74,875 c. $40,500 d. $50,900

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 Direct labour cost Direct labour hours Units of product produced: $27,500 $13,000 400 hours 200 crates How much was the total job cost? a. $56,750 b. $74,875 c. $40,500 d. $50,900

Name: Arabica Manufacturing Company uses a predetermined manufacturing over
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Description: Arabica Manufacturing Company uses a predetermined manufacturing overheadrate based on a percentage of direct labor cost. At the beginning of 2012, theyestimated total manufacturing overhead costs at $1,050,000, and they estimatedtotal direct labor

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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? Oa. $40,500 O b. $50,900 O c. $74.875 O d. $56,750
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