The Rearland Inc.uses a job order costing system to accumulate client-related costs.The overhead rate is 60% of direct labor cost.Staff engineer's time is charged at a rate of $80 per hour.A recent job for a client involved 30 staff labor hours.How much was the total job cost?

Question

Quizplus · Accepted Answer

- Direct labor cost = 30 hours x $80/hour = $2,400
- Overhead cost = 60% x $2,400 = $1,440
- Total job cost = Direct labor cost + Overhead cost = $2,400 + $1,440 = $3,840. Thus, the correct answer is C.