Farber Corporation uses 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 |
80% of direct labor cost |
Applied overhead was 30% of total manufacturing costs. The Work in Process inventory at January 1 was 75% of the Work in Process inventory at December 31. Farber Company”s total direct labor cost was:
A) $750,000
B) $600,000
C) $900,000
D) $937,500