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The engineering firm of Dobbs and Smith uses a job order costing system to accumulate client-related costs. The overhead rate is 60% of direct labor cost. Staff engineer time is charged at a rate of $80 per hour. A recent job for a client involved 30 staff labor hours. How much was the total job cost?
Invoice
A document issued by a seller to a buyer, detailing a transaction and requesting payment.
Non-sufficient Funds
A situation where a bank account does not have enough money to cover a transaction, often resulting in a fee.
Uncollectible Account
An account receivable that is deemed unrecoverable from a debtor, often written off as a bad debt by the company.
Purchases Journal
A specialized accounting journal used to record all purchase transactions, typically for inventory or supplies.
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