Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

Aquazona Pool Company is a custom pool builder. The company recently completed a pool for the Drayna family (Job 1324) as summarized on the incomplete

image text in transcribed

Aquazona Pool Company is a custom pool builder. The company recently completed a pool for the Drayna family (Job 1324) as summarized on the incomplete job cost sheet below. Job Cost Sheet Job Number: 1324 Date Started: 7/8/2018 Date Completed: 8/30/2018 Description: Drayna Pool Applied Manufacturing Overhead Hours Rate Amount Direct Materials Reg. No Amount MR 3345 $1,500 MR 3372 1,000 MR 4251 1,250 MR 4263 1,750 MR 5236 2,000 $7,500 Direct Labor Ticket Hours Amount TT 335 31 $ 600 TT 340 39 800 TT 385 600 TT 425 34 700 TT 445 500 15B $3,200 31 Cost Summary $7,500 3,200 Direct Materials Cost Direct Labor Cost Applied Manufacturing Overhead Total Cost The company applies overhead to jobs at a rate of $15 per direct labor hour. Required: 1. Calculate how much overhead would be applied to Job 1324. 2. Compute the total cost of Job 1324. 3. Assume the company bids its pools at total manufacturing cost plus an additional 30 percent. If actual costs were the same as estimated, determine how much revenue the company would report on the sale of Job 1324. 4. Calculate how much gross profit Aquazona made on the sale of the Drayna pool, before any adjustment for over- or underapplied manufacturing overhead

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: J. David Spiceland, James Sepe, Mark Nelson

6th edition

978-0077400163

Students also viewed these Accounting questions