Copy Center pays an average wage of $13 per hour to employees for printing and copying jobs, and allocates $19 of overhead for each employee hour worked. Direct materials are assigned to each job according to actual cost. If Job M-47 used $375 of direct materials and took 15 direct labor hours of labor to complete, what is the total cost that should be assigned to the job?

Question

Jenny

Business

5 July, 03:25

Copy Center pays an average wage of $13 per hour to employees for printing and copying jobs, and allocates $19 of overhead for each employee hour worked. Direct materials are assigned to each job according to actual cost. If Job M-47 used $375 of direct materials and took 15 direct labor hours of labor to complete, what is the total cost that should be assigned to the job?

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Answers (1)

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Darwin Klein · Answer 1

Total cost = $855

Explanation:

Giving the following information:

Copy Center pays an average wage of $13 per hour to employees for printing and copying jobs and allocates $19 of overhead for each employee hour worked.

Job M-47:

Direct material = $375

Direct labor = 15 direct labor hours

The total cost of Job M-47 is calculated by adding direct material, direct labor, and allocated overhead:

Direct labor = 15*13 = $195

Allocated overhead = 15*19 = $285

Total cost = 375 + 195 + 285 = $855