Question

Copy Center pays an average wage of $13 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. Jobs are marked up 15% above total manufacturing cost to determine the selling price. If Job M-47 used $355 of direct materials and took 20 direct hours of labor to complete, what is the selling price of the job

Answer 1

Answer:

$1,121.25

Explanation:

The computation of the selling price of the job is shown below:

But before that the total cost need to be determined

Total cost is

= Direct Materials + Direct Labor + Factory overhead

= $355 + ($13 × 20) + ($18 × 20)

= $355 + $260+ $360

= $975

Now Selling price of the job is

= Total cost × (100 + 15%)

= $975 × 115%

= $1,121.25