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 $370 of direct materials and took 15 direct labor hours of labor to complete, what is the total cost that should be assigned to the job

Answer 1

$820

Step-by-step explanation:

Firstly, we need to find the overhead cost.

Overhead cost = 15 hours × $18

= $270 per hour

Labor cost = $15 hours × $12

= $180 per hour

Direct material = $370.

Therefore,

Total cost = $370 + $270 + $180

= $820

Total cost that should be assigned to the job is $820