Question

Our company 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 $260 of materials and took 15 hours of labor to complete, what is the total cost that should be assigned to the job

Answer 1

Job M-47 cost assinged $710

Step-by-step explanation:

the cost is the sum of the three main component

materials

direct labor

manufacturing overhead (MO)

we will calculate each of this for the Job M-47 add them together to get total cost

Job M-47

material 260

15 labor hours

Direct Labor 15 labour hours x 12 labor rate = 180

MO 15 labour hours x 18 overhead rate = 270

Total Cost materials + labor + manufacturing overhead = 710