false Cost of Normal Spolage Caused by Nature of Job Frieling Company installs g
ID: 2333832 • Letter: F
Question
false Cost of Normal Spolage Caused by Nature of Job Frieling Company installs granite countertop area at the customer's home, cuts the granite to that shape, and 600. Overhead is applied at the rate of 120 percent of direct labor cost. another piece and install it to property complete the job. The additional countertops in customers' homes. First, the customer chooses the particular granite slab, and then Frieling measures the installs it. The Tramel job calls for direct materials of $2,100 and direct labor of Undortiunately, one small countertop breaks during installation and Frieling must out 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 could require much more care and potentially additional work As a result, Frieing considens this spollage to be caused by the Tramels' job. Required: 1. Calculate the cost of the Tramel job 2Does a journal entry to the overhead contrel account need to be made? 3. What if the additional rework required $600 of direct labor? what would be the efect on the cost of the Tramel If the additional rework required $600 of direct labor rather than $300, then the total cost of the tramel job would -by to $ Previous ext All work saved 347P EExplanation / Answer
1) cost of the Tramel Job :-
Additional Rework :-
Total Cost of Tramel Job = $3420 + $1260 = $4680
2) Journal entry of Overhead :-
3) If Additional rework required $600 of direct labor rather than $300. then the total cost of the Tramel job would Increase from $4680 to $5340.
Additional Rework :-
Total Cost of Tramel Job = $3420 + $1920 = $5340
Particulars Amount($) Direct Materials 2100 Direct Labor 600 Overhead ($600*120%) 720 Cost 3420Related Questions
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