Big Corporation has a job-order cost system. The information below is from the financial records of the company for last year:

Total manufacturing costs ......................... $2,500,000

Cost of goods manufactured ...................... $2,425,000

Predetermined overhead rate ..................... 75% of direct labor cost

Applied overhead was 25% of total manufacturing costs. The Work in Process inventory at January 1 was 70% of the Work in Process inventory at December 31.

1. Company's total direct labor cost was: A) $750,000 B) $625,000 C) $833,333 D) $937,500

2. Total cost of direct material used by Farber Company was: A) $750,000 B) $812,500 C) $1,041,667 D) $1,150,000

3. The Work in Process inventory at December 31 was: A) $225,000 B) $300,000 C) $250,000 D) $75,000