Albert Rasmosus Attorney at Law uses a job order costing system to determine the

Question

Albert Rasmosus Attorney at Law uses a job order costing system to determine the cost of his services. Use the following list to determine the average direct labor rate if the amount of hours was 589 direct labor hours.

Utilities                                                                                                                         20,000

                        Reimbursed travel Costs directly related to the case                        5,250

                        Used office supplies                                                                          1,500

                        Professional salaries                                                                        6,000

Explanation / Answer

Average Direct Labour Time

Cost of Services using Job Order costing System

Direct labour hrs = 589 Hrs

Total Cost = 20000+1500=5250+6000 = $32750

Average direct labor rate = Total Costs / direct labour Hrs =32750/589 =$55.60 per Direct labour hr.

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