The Engineering Firm of Dobbs and Smith Uses a Job

question 59

Multiple Choice

The engineering firm of Dobbs and Smith uses a job order costing system to accumulate client-related costs.The overhead rate is 65% of direct labour cost.Staff engineer's time is charged at a rate of $100 per hour.A recent job for a client involved 30 staff labour hours.How much was the total job cost?

• A) $975
• B) $3000
• C) $2000
• D) $4950

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Definitions:

Horizontal Loading

The process of increasing the variety of tasks and responsibilities of an employee at the same level of the organization, without necessarily increasing their authority or compensation.

Mass Production

A method of manufacturing large quantities of products quickly and efficiently using assembly line techniques and standardized parts.

Predetermined Tools

Tools or equipment selected prior to their application or implementation in a process or project.

Repetitive

Characterized by or involving repetition, especially in actions, events, or processes, leading to a lack of variety.