Cost of Normal Spoilage Caused by Nature of Job Frieling Company installs granite countertops in customers' homes, First, the customer chooses the particular granite siab, and then Frieling measures th countertop area at the oustomer's home, cuts the granite to that shape, and installs it. The Tramel job calls for direct materials of $2,600 and direct labor of $1,300. Overhead is applied at the rate of 120 percent of direct labor cost. Unfortunately, one small countertop breaks during installation and frieling must out another plece and install it to properly complete the job. The additional rework required direct materials costing $1,100 and direct labor costing $000. Arsume 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 plece could require much more care and potentially additional work. As a result, Frieling considers this spolape to be caused by the Iramtef' Job. Requirest: 1. Calculate the cost of the Tramel job. 2. Does a fournal entry to the overhad control account need to be made? 3. What if the additional rewoik reouired $1,600 of direct labor? What would be the effect on the cost of the framel job? II the additional rework required 51,600 of direct labor rather than 5000 , then the total cost of the Tramel fob mould to 1 Frieling Company installs grarite countcrtops 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 $2,600 and direct iabor of $1,300. Overhead is applied at the rate of 120 percent of direct labor cost. Unfortunately, one small countertop breake during installation and Frieling must cut another piece and install it to properly complete the job. The additional rework required direct cmaterials costing $1,100 and direct labor costing 5800. Assume that the spoilage was due to the inherently fragile nature of the piece of stone picked out by the Irarnels. Frieling bad warned them that the chosen piece could require much more care and potentially additional work. As a result. Fricling considers this spoilage to be caused by the Tramels' job. Required: 1. Calculate the cost of the Tramed job. 2. Does a journal entry to the overhead control-account need to be mada? 3. What if the additional rework required $1,600 of direct labor? What would bo the effect on the cost of the Tramal job? If the additional rework required $1,600 of direct labor rather than $800, then the total cosk of the Tramel job would by $
