A single transaction is defined as a single employee working on a single job in one work center.
When costing a single transaction, the full hours with full manufacturing rate and overhead are applied to the job.
Bob’s manufacturing rate is $15 per hour. The overhead in Bob's department is $25 per hour.
Costing for Job 1000
Total Labor Hours = 3.
Labor = 3 hours * $15 per hour = $45.
Overhead = 3 hours * $25 per hour = $75.
Total Cost = $45 + $75 = $120.