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. Materials are assigned to each job according to actual cost. Jobs are marked up 20% above cost to determine the selling price. If Job M-47 used $350 of materials and took 20 hours of labor to complete, what is the selling price of the job?
A) $852
B) $1,140
C) $456
D) $720
E) $708

Question

Quizplus · Accepted Answer

To calculate the cost of the job, we need to add the cost of labor and materials:
Cost of labor = 20 hours x $12 per hour = $240
Overhead costs = 20 hours x $18 per hour = $360

Total cost = Materials + Labor + Overhead
Total cost = $350 + $240 + $360
Total cost = $950

To determine the selling price, we need to mark up the total cost by 20%:
Selling price = Total cost x 1.2
Selling price = $950 x 1.2
Selling price = $1,140

Therefore, the selling price of the job is $1,140, which is option B.

Copy Center Pays an Average Wage of $12 Per Hour