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Cost of Normal spoilage Coused by Nature of Job. Ineling Company installs granite countertops in customers' homes. First, the customer chooses the particular aranite slab,
Cost of Normal spoilage Coused by Nature of Job. Ineling Company installs granite countertops in customers' homes. First, the customer chooses the particular aranite slab, and then frieling measares the countertop area at the customer's horne, cuts the granite to that shape, and installs is. The Tramel job calls for direct materials of 52,000 and direct labor of 5600 , Overifead is apolied at the rate of 110 percent of direct labor cost. Unfortunately, one small countertop breaks during installation and frieling must cut anosher piece and install it to properily complete the job. The sdditional rework tequired direct materials costing $500 and direct tabor costing $200. Assume 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 giece muld require mush mare care and potentially addibonal work. As a tesult, Frieling considers this spollage to be caused by the Tramels' job. Required 1. Calculate the cost of the Tramel job. 2. Does a journal entry to the overhead control account need to be made? 3. What if the additional rework required 5400 of direct labor? What would be the effect on the cost of the lramel job? If the additional rework required $400 of direct labor rather than $200, then the total cost of the Tramel job would
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