$1,320 was the total job cost, And so , correct option is A.$1,320.
Explanation:
Here we have , Highland, Inc., an engineering firm, uses a job order costing system to accumulate client−related costs. The predetermined overhead allocation rate is 50% of staff labor cost. The work by engineers is charged to jobs at a rate of $33 per staff labor hour. A recent job for a client used 80 staff labor hours. Let's calculate job cost for 80 staff labor hours at a rate of $33 per staff labor hour :
[tex]Cost = rate (Number-staffs)[/tex]
⇒ [tex]Cost = rate (Number-staffs)[/tex]
[tex]rate = 33[/tex] and [tex]Number-staffs = 80[/tex]
⇒ [tex]Cost = rate (Number-staffs)[/tex]
⇒ [tex]Cost = 33 (80)[/tex]
⇒ [tex]Cost = 2640[/tex]
But , it's given that The predetermined overhead allocation rate is 50% of staff labor cost. ∴ Total cost = 50% of 2640
⇒ Total cost = [tex]\frac{2640(50)}{100}[/tex]
⇒ Total cost = [tex]1320[/tex]
Hence, $1,320 was the total job cost, And so , correct option is A.$1,320.
