1. Prepare a job cost sheet for a single family home under construction. List ab
ID: 2330197 • Letter: 1
Question
1. Prepare a job cost sheet for a single family home under construction. List about five items that can be classified as direct materials and direct labor. Make a list of overhead costs of five items. Explain how you think overhead should be applied.
2. Contact a home builder and compare your job cost sheet to this builder's job cost sheet. If possible, speak to the company's accountant. Write your findings in a short report (about 1 page). If you do not like home builders, you can choose an architecture firm, consulting company, auditing firm, manufacturing company or any other company that uses job order costing.
Explanation / Answer
1.) Project Name :- Sinlge Home 2208 City :-
Type of cost
Classification od direct marerial and direct labour -
Wood - Direct material
Steel - Direct material
Concrete - Direct material
Electrical fittings - Direct material
Workers - Direct labour
Subcontractors - Direct labour
Note # 1.) List of overhead Cost
Depreciation of equipment $1250
Building Rent $ 250
Property tax $500
Employees Salaries $1750
Other Utilities $750
TOTAL $4500
Overhead Cost don't directly relate to the job so this step is an approximation rather than a calculation. Many construction businesses work out the overhead by adding a % to each job. In this case we also divide the whole overhead expense on jobs.
2.) It is not practicle to solve by an expert, it is more of gathering information through direct communication from construction businesses.
Job Cost SheetType of cost
Amount or Quantity Price or Rate Total Cost (Rounded) Direct Material 10000 square feet $12 per square foot $1,20000 Direct Labour 1500 hours of labor $15 per hour $22500 Overheads Refer Note # 1 - $4500Related Questions
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