ng Company installs granite countertops in customers' homes. First, the customer chooses the tertop area at the customer's home, cuts the granite to that shape, and installs it. The Tramel j 300. Overhead is applied at the rate of 120 percent of direct labor cost. Unfortunately, one smal another piece and install it to properly complete the job. The additional rework required direct m me that the spoilage was due to the inherently fragile nature of the piece of stone picked out by en piece could require much more care and potentially additional work. As a result, Frieling cons uired: alculate the cost of the Tramel job. 3,740 oes a journal entry to the overhead control account need to be made? Vhat if the additional rework required $2,200 of direct labor? What would be the effect on the ce ne additional rework required $2,200 of direct labor rather than $1,100, then the total cost of the to $
ng Company installs granite countertops in customers' homes. First, the customer chooses the tertop area at the customer's home, cuts the granite to that shape, and installs it. The Tramel j 300. Overhead is applied at the rate of 120 percent of direct labor cost. Unfortunately, one smal another piece and install it to properly complete the job. The additional rework required direct m me that the spoilage was due to the inherently fragile nature of the piece of stone picked out by en piece could require much more care and potentially additional work. As a result, Frieling cons uired: alculate the cost of the Tramel job. 3,740 oes a journal entry to the overhead control account need to be made? Vhat if the additional rework required $2,200 of direct labor? What would be the effect on the ce ne additional rework required $2,200 of direct labor rather than $1,100, then the total cost of the to $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 $2,900 and direct labor
of $800. 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 properly complete the job. The additional rework required direct materials costing $1,400 and direct labor costing $1,100.
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.
3,740
2. Does a journal entry to the overhead control account need to be made?
Yes
3. What if the additional rework required $2,200 of direct labor? What would be the effect on the cost of the Tramel job?
If the additional rework required $2,200 of direct labor rather than $1,100, then the total cost of the Tramel job would
by $
to $
47
Previous
Next
OEO 4) 1:22 PM
%24"
Transcribed Image Text:eAssignment/takeAssignmentMain.do?invoker%3Dassignments&takeAssignmentSessionLocator=Dassignment-take&inprogress=false
☆ 回务
eBook
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 $2,900 and direct labor
of $800. 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 properly complete the job. The additional rework required direct materials costing $1,400 and direct labor costing $1,100.
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.
3,740
2. Does a journal entry to the overhead control account need to be made?
Yes
3. What if the additional rework required $2,200 of direct labor? What would be the effect on the cost of the Tramel job?
If the additional rework required $2,200 of direct labor rather than $1,100, then the total cost of the Tramel job would
by $
to $
47
Previous
Next
OEO 4) 1:22 PM
%24
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