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

question 105

Multiple Choice

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

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Definitions:

GLOBE Model

A research framework used for understanding the relationship between culture and societal, organizational, and leadership effectiveness across the world.

Collectivism-societal

An orientation valuing the goals, well-being, and views of the group over those of the individual, prevalent in various cultures and societies.

Cohesiveness

The degree to which members of a group or team are united in pursuing common goals, leading to a sense of unity and loyalty.

GLOBE Model

An investigative framework focused on exploring how culture influences the efficacy of societies, organizations, and leadership globally.