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 $350 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

Answer:

$950

Explanation:

The computation of the total cost assigned is shown below:

= Direct Material cost + Direct labor cost + overhead cost

where,

Direct material cost is $350

Direct labor cost = $12 × 20 direct labor hours = $240

Overhead cost = $18 × 20 direct labor hours = $360

Now put these values to the above formula  

So, the value would equal to

= $350 + $240 + $360

= $950