what is the total job​ cost?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Neptune Accounting Services expects its accountants to work for
26,000
direct labor hours per year. The​ company's estimated total indirect costs are
$227,000.
The direct labor rate is
$65
per hour. The company uses direct labor hours as the allocation base for indirect costs. If Neptune performs a job requiring
40
hours of direct​ labor, what is the total job​ cost? (Round any intermediate calculations to the nearest​ cent, and your final answer to the nearest​ dollar.)
 
 
 
 
A.
$2,949
 
B.
$227,000
 
C.
$2,600
 
D.
$349
 
 
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