Prepare a time sheet and cost sheet FGHJForm a five-person team. Three team members will be "laborers." One team member will be in charge of materials. The last teammember will be the "accountant."Each laborer should prepare an individual time sheet for each of the three days described below.The team member in charge of materials should prepare a materials requisition form for each employee similar to that illustrated inthe chapter (you can use one per employee and don't have to do a separate one for each day).The "accountant" will collect the time sheets and materials requisition forms, and compile job cost sheets for the two jobsdescribed in the following facts. Overhead is to be applied at $5 per direct labor hour.What cost is assigned to each job? At the conclusion of the problem, consider if you believe the overhead application rate is toolow. Why?DAY1The company refurbishes airplane engines. The Engine A job was begun, and all three laborers worked 8 hours each. Laborers#1and #2 worked exclusively on Engine A, but laborer #3 spent 3 hours on repairing factory tools and maintenance. Laborer #1requisitioned engine pistons (16 at $400 each) andLaborer #3 requisitioned two engine manifolds that cost $4,000 each.Laborer #2 requisitioned a lubricant for freeing stuck bolts (2 cans at $8 each). Each laborer is paid $25 per hour.DAY 2Engine Bjob was begun, and all three laborers worked 8 hours each. Laborer #1continued to work on Engine A for 7 hours, andspent 1hour reviewing a training manual containing information needed to pass an upcoming certification test. Laborers #2 and#3 each worked6 hours on Engine B. Laborer #2 requisitioned engine glow plugs (4 at $300 each), and heat resistant tape (1rollat $7). Laborer #3 requisitioned cleaning solution needed to remove spilled grease from the shop floor (1can at $24), andLaborers #2 and #3 spent 2 hours each cleaning the floor.DAY 3Engine A and B were finished. Laborer #1equally split 8 hours of work between Engine A and Engine B. Laborer #2 did not reportfor work due to illness brought on by the cleaning solution used the day before, and will be paid for 8 hours of sick time. Laborer#3 worked 8 hours on Engine B. The only materials used were miscellaneous gaskets costing $6 that had been requested byLaborer #1.

Overheads is $5 per direct labor hour

Answered: Prepare a time sheet and cost sheet

Prepare a time sheet and cost sheet

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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