Question

Cost of Normal Spoilage Caused by Nature of Job Frieling Company installs granite countertops in customers'...

Cost of Normal Spoilage Caused by Nature of Job

Frieling Company installs granite countertops in customers' homes. First, the customer chooses the particular granite slab, and then Frieling measures the countertop area at the customer's home, cuts the granite to that shape, and installs it. The Tramel job calls for direct materials of $2,100 and direct labor of $1,100. Overhead is applied at the rate of 150 percent of direct labor cost. Unfortunately, one small countertop breaks during installation and Frieling must cut another piece and install it to properly complete the job. The additional rework required direct materials costing $600 and direct labor costing $300.

Assume that the spoilage was due to the inherently fragile nature of the piece of stone picked out by the Tramels. Frieling had warned them that the chosen piece could require much more care and potentially additional work. As a result, Frieling considers this spoilage to be caused by the Tramels' job.

Required:

1. Calculate the cost of the Tramel job.
$

2. Does a journal entry to the overhead control account need to be made?

3. What if the additional rework required $600 of direct labor? What would be the effect on the cost of the Tramel job?

If the additional rework required $600 of direct labor rather than $300, then the total cost of the Tramel job would by $ to $.

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Frieling Company installs granite countertops in customers' homes. First, the customer chooses the particular granite slab,...
Frieling Company installs granite countertops in customers' homes. First, the customer chooses the particular granite slab, and then Frieling measures the countertop area at the customer's home, cuts the granite to that shape, and installs it. The Tramel job calls for direct materials of $2,800 and direct labor of $1,000. Overhead is applied at the rate of 120 percent of direct labor cost. Unfortunately, one small countertop breaks during installation and Frieling must cut another piece and install it to...
Cost of Normal Spoilage Frieling Company installs granite countertops in customers' homes. First, the customer chooses...
Cost of Normal Spoilage Frieling Company installs granite countertops in customers' homes. First, the customer chooses the particular granite slab, and then Frieling measures the countertop area at the customer's home, cuts the granite to that shape, and installs it. The Tramel job calls for direct materials of $2,600 and direct labor of $1,300. Overhead is applied at the rate of 120 percent of direct labor cost. Unfortunately, one small countertop breaks during installation and Frieling must cut another piece...
Characteristics of Production Process, Cost Measurement Vince Melders, of EcoScape Company, designs and installs custom lawn...
Characteristics of Production Process, Cost Measurement Vince Melders, of EcoScape Company, designs and installs custom lawn and garden irrigation systems for homes and businesses throughout the state. Each job is different, requiring different materials and labor for installing the systems. EcoScape estimated the following for the year: Number of direct labor hours 6,870 Direct labor cost $82,440 Overhead cost $55,647 During the year, the following actual amounts were experienced: Number of direct labor hours 6,130 Direct labor incurred $79,690 Overhead...
Characteristics of Production Process, Cost Measurement Vince Melders, of EcoScape Company, designs and installs custom lawn...
Characteristics of Production Process, Cost Measurement Vince Melders, of EcoScape Company, designs and installs custom lawn and garden irrigation systems for homes and businesses throughout the state. Each job is different, requiring different materials and labor for installing the systems. EcoScape estimated the following for the year: Number of direct labor hours 6,720 Direct labor cost $67,200 Overhead cost $50,400 During the year, the following actual amounts were experienced: Number of direct labor hours 6,045 Direct labor incurred $66,495 Overhead...
1.Job Order Cost Sheet Remnant Carpet Company sells and installs commercial carpeting for office buildings. Remnant...
1.Job Order Cost Sheet Remnant Carpet Company sells and installs commercial carpeting for office buildings. Remnant Carpet Company uses a job order cost system. When a prospective customer asks for a price quote on a job, the estimated cost data are inserted on an unnumbered job cost sheet. If the offer is accepted, a number is assigned to the job, and the costs incurred are recorded in the usual manner on the job cost sheet. After the job is completed,...
Characteristics of Production Process, Cost Measurement Vince Melders, of EcoScape Company, designs and installs custom lawn...
Characteristics of Production Process, Cost Measurement Vince Melders, of EcoScape Company, designs and installs custom lawn and garden irrigation systems for homes and businesses throughout the state. Each job is different, requiring different materials and labor for installing the systems. EcoScape estimated the following for the year: During the year, the following actual amounts were experienced: Number of direct labor hours = 6720 Direct labor cost = 67,200 Overhead cost = 50,400 During the year the following actual amounts were...
Granite Company uses a job-order costing system. The company applies manufacturing overhead to jobs using a...
Granite Company uses a job-order costing system. The company applies manufacturing overhead to jobs using a predetermined overhead rate based on direct labor-hours. Last year, manufacturing overhead and direct labor-hours were estimated at $80,000 and 16,000 hours respectively, for the year. In June, Job #315 was completed. Materials costs on the job totaled $1,500 and labor costs totaled $2,400 at $6 per hour. At the end of the year, it was determined that the company worked 15,000 direct labor-hours for...
Characteristics of Production Process, Cost Measurement Vince Melders, of EcoScape Company, designs and installs custom lawn...
Characteristics of Production Process, Cost Measurement Vince Melders, of EcoScape Company, designs and installs custom lawn and garden irrigation systems for homes and businesses throughout the state. Each job is different, requiring different materials and labor for installing the systems. EcoScape estimated the following for the year: Number of direct labor hours 6,720 Direct labor cost $67,200 Overhead cost $50,400 During the year, the following actual amounts were experienced: Number of direct labor hours 6,045 Direct labor incurred $66,495 Overhead...
A job cost sheet of Sandoval Company is given below. Job Cost Sheet JOB NO. 469...
A job cost sheet of Sandoval Company is given below. Job Cost Sheet JOB NO. 469 Quantity 2,000 ITEM White Lion Cages Date Requested 7/2 FOR Todd Company Date Completed 7/31 Date Direct Materials Direct Labor Manufacturing Overhead 7/10 700 12 900 15 400 480 22 300 360 24 1,640 27 1,560 31 700 840 Cost of completed job:          Direct materials          Direct labor           Manufacturing overhead        Total cost        Unit cost (a) Answer the following questions. (1)...
Sheds, Inc. designs and builds sheds and outbuildings for individual customers. The company uses a job...
Sheds, Inc. designs and builds sheds and outbuildings for individual customers. The company uses a job cost system and treats each customer's order as a separate job. At the beginning of January the company had the following raw material inventory: $600 At the beginning of January the company had the following work-in-process inventories: Job 21 $13,000 Job 25 $9,000 During January, the following activities took place: 1. Started jobs 26 and 27. 2. Purchased raw materials in January: $12,000 Requisitioned...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT