Question

The total cost of a job is calculated by adding the total of direct labor cost, direct materials cost, and:

Answer 1

The total cost of a job is calculated by adding the total direct labor cost, direct materials cost, and: applied manufacturing overhead cost

The total cost of a job is also called job costing. Job costing is used by the professional or organization when they complete a job for a client. Because job costing is important for professionals who do different or custom jobs to track the financial cost of each job. Each job has different parameters so the cost to complete the job varies from job to job.

The total cost of a job is a key to measuring the revenue.  Professionals compute the total job cost after completing the job or at the end of the job. However, they use a sheet to record cost information about the job.

The formula for the total cost of a job is given below:

Total cost of a job = direct labor cost + direct materials cost + applied manufacturing overhead cost

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