Nick has asked you to analyze the costs associated with a typical job, focusing attention on overhead. Hed like to be able to generate invoices, knowing exactly what to charge for overhead to cover costs. Since most of the business activity is driven by time on task, it seems appropriate to allocate overhead costs on the basis of direct labor hours.

A review of Nicks activity reveals the following anticipated costs for the period:

Wages paid to receptionist $2,700

Supplies 900

Depreciation on new equipment 115

Advertising 350

Rent and utilities 1,200

=$5,265

Nick estimates that he will work 150 hours on a variety of engagements during the period. He charges $50 per hour just to cover his time. He needs you to help determine the overhead per job. (Round overhead per hour to the nearest dollar) If Nick spends 12 hours preparing a new print and online menu for Lloyds of Lowville, what was the cost of the job?