Question

. A small consulting firm has an overhead rate of 160% of direct labor charged to each job. The materials cost (including travel and other direct costs) for a particular job is $13,500 and the direct labor is $23,500. What is the total job cost for this job?

Answer 1

Answer: The total job cost for this job is: $74 600.

Explanation: The total job cost for this job is given by the sum of Direct materials, Direct labor, and overhead, so we only have to calculate overhead:

Direct materials = $13 500.

Direct labor = $23 500.

Overhead = $23500 x (1,60) = $37 600.

$13500 + $23 500 + $37 600 = $74 600.