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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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Answer:

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

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