Question

An advertising agency is estimating costs for advertising a music festival. The job will require 270 direct labor hours at a cost of $64 per hour. Overhead costs are applied at a rate of $72 per direct labor hour. What is the total estimated cost for this job?

Answer 1

36720

Step-by-step explanation:

Answer 2

$36,720

Step-by-step explanation:

Given that,

Number of direct labor hours = 270 DLH

Direct labor cost = $64 per hour

Overhead cost per DLH = $72

Total estimated cost for this job:

= Direct labor cost + Overhead cost

= (Number of direct labor hours × Cost per DLH) + (Number of direct labor hours × Overhead cost per DLH)

= (270 × $64) + (270 × $72)

= $17,280 + $19,440

= $36,720