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The job AA100 had been assigned the following direct costs:
Materials: $4000
Labour: $5000
During the month of July, 15 jobs were completed using a total of 6000 labour hours. The direct labour rate was $10 per hour and total overhead costs were $30000 for the month. The company uses direct labour hours as its plant-wide allocation base to allocate overhead costs.
Question 1: What is the full cost of the job AA100?
Option a) $11500
Option b) $15500
Option c) $13000
Option d) $11000
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