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Copy Center pays an average wage of $12 per hour to employees for printing and copying jobs, and allocates $18 of overhead for each employee hour worked. Materials are assigned to each job according to actual cost. Jobs are marked up 20% above cost to determine the selling price. If Job M-47 used $315 of materials and took 20 hours of labor to complete, what is the selling price of the job?

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Answer:

The selling price is $1098

Explanation:

Labor $12 x hour

Overhead $18 x hour

Job M-47 took 20 hours, so it would be ($12+$18)*20=$600 + $315 of materials= $915

Total cost= $915 * 1.2 (the 20% mark up over cost)= $1098

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