Job 303 includes direct materials costs of $ 540 and direct labor costs of $ 400. If the predetermined overhead allocation rate is 50 % of direct labor cost, what is the total cost assigned to Job 303?

Total cost will be $1140

Explanation:

We have given direct material cost = $540

Direct labor cost = $400

And overhead allocation is 50 % of direct labor cost

So overhead allocation = 50 % of $400 = $200

We have to find the total cost assigned to the job

So total cost = direct material cost + direct labor cost + overhead allocation = $540 + $400 + $200 = $1140

So total cost will be $1140