The Engineering Firm of Dobbs and Smith Uses a Job

question 13

Multiple Choice

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's 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?

• A)$1,600
• B)$2,400
• C)$3,840
• D)$360

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