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August 1, 2014

Homework Help: accounting

Posted by Anonymous on Saturday, December 10, 2011 at 3:16am.

Plumley Ad Agency contracted with a company to prepare an ad campaign. Plumley uses a job order costing system. Plumley estimates that the job will take 145 designer hours at $90 per hour and 85 staff hours at $45 per hour. Plumley uses two overhead rates in applying overhead to jobs: Designer-related at $100 per designer hour and staff-related at $50 per staff hour. Determine the total estimated cost for this job.
(Hint: What is total direct labor for each job type and total overhead for each job total? Sum of all of these costs is the total estimated cost for this job).

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