Question

Copy Center pays an average wage of $12 per hour to employees for printing and copying jobs, and allocates $18 of overhead for each employee hour worked. Materials are assigned to each job according to actual cost. If Job M-47 used $350 of materials and took 20 hours of labor to complete, what is the total cost that should beassigned to the job?

A. $590
B. $600
C. $380
D. $950
E. $710

Answer 1

D. 950

Step-by-step explanation:

To calculate the total cost assigned, use the computation below:

= direct material cost + direct labor cost + overhead cost

Direct materials = $350

Direct labor = $12 per hour x 20 hours = $240

Overhead= $18 per hour x 20 hours = $360

350 + 240 + 360 = 950