highland, inc., an engineering firm, uses a job order costing system to accumulate clientminus−related costs. the predetermine

Question

3 years ago

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highland, inc., an engineering firm, uses a job order costing system to accumulate clientminus−related costs. the predetermine

d overhead allocation rate is of staff labor cost. the work by engineers is charged to jobs at a rate of per staff labor hour. a recent job for a client used staff labor hours. how much was the total job cost

Business

1 answer:

Reil [10] · Answer 1 · 2022-06-09T08:05:28+03:00

Answer:

$3,960

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.

​highland, inc., an engineering​ firm, uses a job order costing system to accumulate clientminus−related costs. the predetermine

highland, inc., an engineering firm, uses a job order costing system to accumulate clientminus−related costs. the predetermine