Arabica Manufacturing Company uses a predetermined manufacturing overhead rate based on a percentage of direct labor cost. At the beginning of 2016, they estimated total manufacturing overhead costs at $1,015,000, and they estimated total direct labor costs at $1,400,000.

The administration and selling overheads are to be absorbed in each job cost at 20% of prime cost.

Distribution cost should be added to each job according to quotes from outside carriage companies.

The company wishes to quote for job # 511. Job stats are as follows:

Direct materials cost $185,500

Direct labour cost $220,000

Direct labour hours 400 hours

Special Design Cost $13,500

Distribution quote from haulage company $10,700

Units of product produced 200 crates

a) Compute Arabic Manufacturing Company predetermined manufacturing overhead rate for 2016.

b) How much manufacturing overhead was allocated to Job #511?

c) Calculate the total cost & quotation price of Job #511, given that a margin of 25% is applied.

How much was the production cost per unit (cost per crate) of finished product?