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?

Business · College · Mon Jan 18 2021

Answered on

To find the total cost assigned to Job M-47, we can calculate it by summing up the direct materials cost, direct labor cost and allocated overhead cost.

Given:

Direct materials cost for Job M-47 = $375

Direct labor hours for Job M-47 = 15

Average wage per hour = $13

Overhead allocated per employee hour = $19

First, let's calculate the direct labor cost for Job M-47:

Direct Labor Cost = Direct Labor Hours × Average Wage per Hour

Direct Labor Cost = 15× $13

Direct Labor Cost = $195

Next, we find the total overhead cost allocated to Job M-47 based on the direct labor hours:

Overhead Cost = Direct Labor Hours × Overhead per Hour

Overhead Cost = 15×$19

Overhead Cost = $285

Now, let's sum up the direct materials cost, direct labor cost, and allocated overhead cost for Job M-47:

Total Cost for Job M-47 = Direct Materials Cost + Direct Labor Cost + Overhead Cost

Total Cost for Job M-47 = $375 + $195 + $285

Total Cost for Job M-47 = $855

Therefore, the total cost that should be assigned to Job M-47 is $855.

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