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:
How much manufacturing overhead was allocated to the job?
A) $16,250
B) $10,400
C) $5,000
D) $34,375
Correct Answer:
Verified
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