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. Direct materials are assigned to each job according to actual cost. If Job M-47 used $355 of direct materials and took 20 direct labor hours of labor to complete, what is the total cost that should be assigned to the job

Answer 1

Total cost= $955

Step-by-step explanation:

Giving the following information:

Direct labor cost per hour= $12

Predetermined overhead rate= $18 per direct labor hour

Job M-47 :

Direct material= $355

Number of direct labor hours= 20

Total cost= 355 + 12*20 + 18*20

Total cost= 355 + 240 + 360

Total cost= $955