Cost of Normal Spoilage Frieling Company installs granite countertops in customers' homes. First, the customer chooses...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Cost of Normal Spoilage 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 $2,500 and direct labor of $500. 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 $1,000 and direct labor costing $700. 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. 3,700 Feedback Check My Work 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 Feedback Check My Work See Cornerstone 5.4. 500 X 0 400 X 0 100 X 3. What if the additional rework required $1,400 of direct labor? What would be the effect on the cost of the Tramel job? The cost of the Tramel job would not be affected. Cost of Normal Spoilage 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 $2,500 and direct labor of $500. 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 $1,000 and direct labor costing $700. 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. 3,700 Feedback Check My Work 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 Feedback Check My Work See Cornerstone 5.4. 500 X 0 400 X 0 100 X 3. What if the additional rework required $1,400 of direct labor? What would be the effect on the cost of the Tramel job? The cost of the Tramel job would not be affected.
Expert Answer:
Answer rating: 100% (QA)
To calculate the cost of the Tramel job we need to add up the direct materials direct labor and over... View the full answer
Related Book For
Cornerstones of Cost Management
ISBN: 978-1285751788
3rd edition
Authors: Don R. Hansen, Maryanne M. Mowen
Posted Date:
Students also viewed these accounting questions
-
A firm faces the following demand and total cost schedules, with all quantities listed on a per-month basis. Suppose that it is required to produce a whole number of items each month. a. How much...
-
Assume that stock market returns do not resemble a single-index structure. An investment fund analyses 40 stocks in order to construct a mean-variance efficient portfolio. They need to calculate 820...
-
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 customers home, cuts...
-
In the United States, a principal responsibility for preserving endangered species (e.g., a pair of endangered birds that chooses to nest on private land) and the costs of exercising that...
-
Explain the managerial communication style grid. What are some purposes served by informal communication?
-
On August 25, 1894, Chicago catcher William Schriver caught a baseball thrown from the top of the Washington Monument (555 ft, 898 steps). (a) If the ball was thrown horizontally with a speed of 5.00...
-
A Moore Corporation manufactures a single product. The standard cost per unit Compute variances. of product is shown below. The predetermined manufacturing overhead rate is \($10\) per direct labor...
-
Banff Water Inc. bottles and distributes spring water. On April 2 of the current year, Banff Water Inc. reacquired 30,000 shares of its common stock at $33 per share. a. What is the balance of...
-
Perit Industries has $140,000 to invest. The company is trying to decide between two alternative uses of the funds. The alternatives are: Cost of equipment required Working capital investment...
-
In early 2016, Doc and Lyn McGee formed the McGee Cake Company. The company produced a full line of cakes, and its specialties included chess cake,* lemon pound cake, and double-iced, double...
-
2. (not included in the expenses above) Dividend income from IBM During its first year of operation, Tom and Jerry's new business reported the following: Sales revenue Cost of goods sold Other...
-
Discuss the benefits and challenges experienced by banks in Zimbabwe on the applicability of the Basel 1 1 and 1 1 1 accords.
-
Assuming you bought 5,000 shares of Ria Berhad at RM2.50 at the beginning of the year. During the year, Ria Berhad has paid a dividend per share (DPS) of RM0.15. On the last trading day of the year,...
-
What are the intricacies involved in the design and operation of membrane distillation systems for the separation of volatile organic compounds from aqueous streams ?
-
Two shafts x and y are in the same line (axis in one line). They are geared together through an intermediate parallel shaft carrying wheels B and C which mesh with the wheels on A and D respectively,...
-
What sum of money should be set aside on a child's birth to provide 8 semi-annual payments of $1500 to cover expenses for university education if the first payment is to be made on the child's 19'th...
-
"Research hypothesis" is another term for ___ hypothesis. A) directional B) non-directional C) alternative D) null
-
Find the volume of the described solid S. A frustum of a right circular cone with height h, lower base radius R, and top radius r -r- --R
-
Money and foreign exchange markets in London and New York are very efficient. You have the following information: Assuming parity conditions hold: a. Estimate inflation in the United States next...
-
Henri Jacque, an arbitrager with Bank of Montreal, faces the following Canadian dollar/U.S. dollar quotes: Henri Jacque is authorized to use C \(\$ 20,000,000\) or its U.S. dollar equivalent. The...
-
Ayako Miyake is a currency arbitrager for Atsugi Bank in Kanagawa. The spot rate this morning is \( 110.60 / \mathrm{S}\), and early indications are the 90 -day interest rates in the United States...
Study smarter with the SolutionInn App