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.
- If Job M-47 used $350 of materials and took 20 hours of labor to complete, what is the total cost that should be assigned to the job?

Question

Quizplus · Accepted Answer

The direct labor cost for Job M-47 is calculated as follows:

Direct labor cost = Hours worked x Hourly wage 
Direct labor cost = 20 x $12 
Direct labor cost = $240

The total cost for Job M-47 can be calculated as:
Total cost = Direct labor cost + Materials cost + Total overhead 
Total cost = $240 + $350 + (20 x $18) 
Total cost = $240 + $350 + $360 
Total cost = $950

Therefore, the total cost that should be assigned to Job M-47 is $950. The answer is C.

Copy Center Pays an Average Wage of $12 Per Hour