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?

Question

Quizplus · Accepted Answer

Total labor cost = $12/hour x 20 hours = $240
Total overhead cost = $18/hour x 20 hours = $360
Total cost of the job = $350 + $240 + $360 = $950
Markup = 20% x $950 = $190
Selling price = $950 + $190 = $1,140. Therefore, the best choice is C.

Copy Center Pays an Average Wage of $12 Per Hour