Question

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. Direct materials are assigned to each job according to actual cost. If Job M-47 used $340 of direct materials and took 20 direct labor hours of labor to complete, what is the total cost that should be assigned to the job?

Multiple Choice

• $700.

• $940.

• $820.

• $580.

• $600.

Answer 1

B. $940.

Total cost that should be assigned to the job = Direct materials + Direct labor + Factory overhead

Total cost that should be assigned to the job = $340 + ($12 * 20) + ($18 * 20)

Total cost that should be assigned to the job = $940