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22 August, 16:06

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 $315 of materials and took 20 hours of labor to complete, what is the selling price of the job?

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  1. 22 August, 16:11
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    The selling price is $1098

    Explanation:

    Labor $12 x hour

    Overhead $18 x hour

    Job M-47 took 20 hours, so it would be ($12+$18) * 20=$600 + $315 of materials = $915

    Total cost = $915 * 1.2 (the 20% mark up over cost) = $1098
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