Chapter $10$ Homework

standard costing system.

Charlene reviewed the invoices pertaining to a number of Tom and Tony's previous jobs to determine the average amount of granite and glue needed per square foot. She then updated prices on both materials to reflect current conditions. The standards she developed for one square foot of counter installed were as follows:

Granite, per square foot

$$50\mathrm{.}00$

Glue $(10$ oz$.$ @ $$0\mathrm{.}15)$

$1\mathrm{.}50$

Direct labor hours:

Cutting labor $(0\mathrm{.}10$ hr$.$ @ $$15)$

$1\mathrm{.}50$

Installation labor $(0\mathrm{.}25$ hr$.$ @ $$25)$

$6\mathrm{.}25$

These standards assumed that one seamless counter requires one sink cut $($the space into which the sink will fit$)$ as well as cutting the counter to fit the space available.

Charlene tracked the actual costs incurred by Tom and Tony for granite installation for the next $6$ months. She found that they completed $50$ jobs with an average of $32$ square feet of granite installed in each one. The following information on actual amounts used and cost was gathered:

$\backslash$table$[[$Granite purchased and used $(1,640$ sq$.$ ft$.),$$$80,848$