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Copy Center pays an average wage of $12 per hour to employees for printing and copying...

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 $365 of materials and took 20 hours of labor to complete, what is the total cost that should be assigned to the job?

Multiple Choice

  • $605.

  • $725.

  • $845.

  • $600.

  • $965.

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Answer #1

overhead cost = 20 hours * 18 per hour

= 360

labor cost = 20 hours * 12 per hour

= 240

direct materials = 365

total cost assigned = 365+240+360

= 965

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