Highland, Inc, an engineering firm, uses a job order costing system to accumulate client-related costs
The predetermined overhead allocation rate is 40% of staff labor cost. The work by engineers is charged to jobs at a rate of $32 per staff labor hour. A recent job for a client used 70 staff labor hours. How much was the total job cost?
A) $896
B) $2,240
C) $3,136
D) $28
C .C)
Direct labor ($70 x 32 staff labor hours) $2,240
Indirect costs ($2,240 x 40%) 896
Total job cost $3,136
Business
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