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If overhead is applied to individual jobs at a rate of 50% of direct labor costs incurred per job, and $50,000 in direct materials were used and $25,000 of direct labor was required, what was the total cost of the job?

a) $25,000
b) $50,000
c) $12,500
d) $87,500

Respuesta :

The total cost of the Job in the question is; D: $87,500

How to find the total Cost?

We are given that;

Direct Labor = $25000

Cost of direct materials used = $50000

Overhead is 50% of direct labor costs. Thus;

Overhead Cost = 50% * $25000 = $12500

Total Cost of Job = Overhead Cost + Materials Cost + Labor Cost

Total Cost of Job = $87,500

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