Question

Bothell Company uses a job order costing system that allocates estimated overhead as 40% of prime costs. What is the cost of a job that required direct materials of $2,000 and direct labor of $5,200

Answer 1

$10,080

Step-by-step explanation:

The computation of the cost of the job is shown below:

We know that

prime cost = direct material + Direct labor

= $2,000 + $5,200

= $,7200

Now overhead is

= 40% of $7200

= $2,880

And,

Cost of job = direct material + Direct labor + overhead

= $2,000 + $5,200 + $2,880

= $10,080