Whitley Construction Company is in the home remodeling business. Whitley has three teams of highly skilled employees, each of whom has multiple skills involving carpentry, painting, and other home remodeling activities. Each team is led by an experienced employee who coordinates the work done on each job. As the needs of different jobs change, some team members may be shifted to other teams for short periods of time. Whitley uses a job costing system to determine job costs and to serve as a basis for bidding and pricing the jobs. Direct materials and direct labor are easily traced to each job using Whitley's cost tracking software. Overhead consists of the purchase and maintenance of construction equipment, some supervisory labor, the cost of bidding for new customers, and administrative costs. Whitley uses an annual overhead rate based on direct labor hours. Whitley has recently completed work for three clients: Harrison, Barnes, and Tyler. The cost data for each of the three jobs are summarized below: Job Harrison Barnes Tyler Direct Materials $7,038 13,514 44,770 Direct Labor Hours. 50 86 143 Budgeted direct materials cost and direct labor cost for the year are estimated at $545,000 and $790,000, respectively. Direct labor hours are budgeted at 32,000 hours, and total overhead is budgeted at $736,000. Required 1 Required 2 Direct Labor Cost $ 15,975 24,502 51,972 Required: 1. Calculate the total cost of each of the three jobs. 2. Suppose that for the entire year, Whitley used 33,300 labor hours and total actual overhead was $761,000. What is the amount of underapplied or overapplied overhead? Harrison Barnes Tyler Complete this question by entering your answers in the tabs below. Calculate the total cost of each of the three jobs. Total Job Cost
Whitley Construction Company is in the home remodeling business. Whitley has three teams of highly skilled employees, each of whom has multiple skills involving carpentry, painting, and other home remodeling activities. Each team is led by an experienced employee who coordinates the work done on each job. As the needs of different jobs change, some team members may be shifted to other teams for short periods of time. Whitley uses a job costing system to determine job costs and to serve as a basis for bidding and pricing the jobs. Direct materials and direct labor are easily traced to each job using Whitley's cost tracking software. Overhead consists of the purchase and maintenance of construction equipment, some supervisory labor, the cost of bidding for new customers, and administrative costs. Whitley uses an annual overhead rate based on direct labor hours. Whitley has recently completed work for three clients: Harrison, Barnes, and Tyler. The cost data for each of the three jobs are summarized below: Job Harrison Barnes Tyler Direct Materials $7,038 13,514 44,770 Direct Labor Hours. 50 86 143 Budgeted direct materials cost and direct labor cost for the year are estimated at $545,000 and $790,000, respectively. Direct labor hours are budgeted at 32,000 hours, and total overhead is budgeted at $736,000. Required 1 Required 2 Direct Labor Cost $ 15,975 24,502 51,972 Required: 1. Calculate the total cost of each of the three jobs. 2. Suppose that for the entire year, Whitley used 33,300 labor hours and total actual overhead was $761,000. What is the amount of underapplied or overapplied overhead? Harrison Barnes Tyler Complete this question by entering your answers in the tabs below. Calculate the total cost of each of the three jobs. Total Job Cost
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Topic Video
Question
Transcribed Image Text:Whitley Construction Company is in the home remodeling business. Whitley has three teams of highly skilled employees, each of
whom has multiple skills involving carpentry, painting, and other home remodeling activities. Each team is led by an experienced
employee who coordinates the work done on each job. As the needs of different jobs change, some team members may be shifted to
other teams for short periods of time. Whitley uses a job costing system to determine job costs and to serve as a basis for bidding and
pricing the jobs. Direct materials and direct labor are easily traced to each job using Whitley's cost tracking software. Overhead
consists of the purchase and maintenance of construction equipment, some supervisory labor, the cost of bidding for new customers,
and administrative costs. Whitley uses an annual overhead rate based on direct labor hours.
Whitley has recently completed work for three clients: Harrison, Barnes, and Tyler. The cost data for each of the three jobs are
summarized below:
Job
Harrison
Barnes
Tyler
Direct
Direct Labor
Materials Hours
50
86
$7,038
13,514
44,770 143
Budgeted direct materials cost and direct labor cost for the year are estimated at $545,000 and $790,000, respectively. Direct labor
hours are budgeted at 32,000 hours, and total overhead is budgeted at $736,000.
Direct
Labor Cost
$ 15,975
24,502
51,972
Required:
1. Calculate the total cost of each of the three jobs.
2. Suppose that for the entire year, Whitley used 33,300 labor hours and total actual overhead was $761,000. What is the amount of
underapplied or overapplied overhead?
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Harrison
Barnes
Tyler
Calculate the total cost of each of the three jobs.
Total Job
Cost
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education