Answer:
$3,960
Step-by-step explanation:
Missing data in the question are highlighted in bold fonts.
Highland, Inc., an engineering firm, uses a job order costing system to accumulate client−related costs. The predetermined overhead allocation rate is 50% of staff labor cost. The work by engineers is charged to jobs at a rate of $33 per staff labor hour. A recent job for a client used 80 staff labor hours. How much was the total job cost?
Calculation for total job cost:
Predetermined overhead allocation rate is 50% of staff labor cost
Rate per staff = $33 per staff
Labor hours = 80 hours
Formula for total job (labor) cost: Labor cost + Overhead cost
Labor cost = Labor hours × Rate per staff = 80 hours × $33 per staff = $2,640
Overhead cost = 50% of Labor cost = 0.5 × $2,640 = $1,320
total job (labor) cost: Labor cost + Overhead cost = $2,640 + $1,320 = $3,960
Therefore, the total job cost is $3,960.