In job costing, manpower accounts for what percentage of the total cost?

• A. 40%
• B. 60%
• C. 50%
• D. 30%

Answer: (A)

In job costing, the total cost is composed of direct materials, direct labor (manpower), and overhead. Manpower typically makes up about 40% of the total cost because direct materials are often the largest share and overhead absorbs the remaining portion. For example, if a job costs 100 in total, materials might be around 50, overhead around 10, and manpower about 40, placing direct labor at 40% of the total. This proportion reflects a common pattern in cost structure where labor is significant but not the majority. The other percentages would imply unusual mixes of materials and overhead for typical job-costing scenarios. Therefore, 40% is the best fit.