The printing industry has become highly automated. Job costing in the printing industry would likely have the following general framework. Job cost equals:None of these answer choices are correct. direct materials cost, plus outside purchase costs, plus overhead cost applied on the basis of labor hours. direct materials cost, plus conversion costs applied on the basis of labor hours. direct materials cost, plus direct labor cost plus applied overhead based on machine hours. materials purchases, labor incurred and applied overhead based on labor hours

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Asked Sep 22, 2019
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The printing industry has become highly automated. Job costing in the printing industry would likely have the following general framework. Job cost equals:
None of these answer choices are correct.
 
direct materials cost, plus outside purchase costs, plus overhead cost applied on the basis of labor hours.
 
direct materials cost, plus conversion costs applied on the basis of labor hours.
 
direct materials cost, plus direct labor cost plus applied overhead based on machine hours.
 
materials purchases, labor incurred and applied overhead based on labor hours
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Expert Answer

Step 1

 Job Costing is a type of Cost Accounting which assigns manufacturing cost to specific product or job. This form of costing helps in monitoring manufacturing costs on the basis of direct material, direct labor, and overhead cost. It is also customer-specific in nature, i.e. the expenses incurred to manufacture or provide service as per the customer requirement are included in the cost of the product or service.

Step 2

Manufacturing cost is divided as Direct Material, Direct Labor and overhead expenses applied on the basis of the allocation method followed by the organization. The allocation methodology can be based on Labor hours, machine hours, or any specific allocation strategy followed by the company.

The cost of Direct material depicts the value of d...

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