Question

The total cost of a job is calculated by adding the total of direct labor cost, direct materials cost, and ________?

1) Overhead cost
2) Indirect cost
3) Variable cost
4) Fixed cost

Answer 1

The total cost of a job is calculated by adding the total of direct labor cost, direct materials cost, and overhead cost.

Step-by-step explanation:

The total cost of a job is calculated by adding the total of direct labor cost, direct materials cost, and overhead cost. Overhead cost includes expenses that are not directly tied to the production of goods or services, such as rent, utilities, and administrative salaries.

For example, if the direct labor cost is $100, the direct materials cost is $50, and the overhead cost is $200, then the total cost of the job would be $350.