Frieling Company installs granite countertops in customers' homes. First, the customer chooses the particular granite slab, and
Question:
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 $2,300 and direct labor of $900. Overhead is applied at the rate of 140 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 $800 and direct labor costing $500. Assume that the spoilage was due to carelessness by a Frieling worker and it is considered to be normal spoilage.
Required:
1. Calculate the cost of the Tramel job.
$
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2. Make any needed journal entry to the overhead control account. If an amount box does not require an entry, leave it blank.
Overhead Control
Materials
Payroll
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3. What if the additional rework required $1,000 of direct labor? What would be the effect on the cost of the Tramel job?
Expert Answer:
1 Calculate the Cost of the Tramel Job First we need to sum up the costs of direct materials direct ... View the full answer
