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Cost of Normal SpoilageFrieling Company installs granite countertops in customers' homes. First, the customer chooses the particular granite slab, and then Frieling measures the countertop

Cost of Normal SpoilageFrieling 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 $2,600 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 cut another piece and install it to
properly complete the job. The additional rework required direct
materials costing $1,100 and direct labor costing $800. 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.2.Make any needed journal entry to the
overhead control account. If an amount box does not require an
entry, leave it blank.3.What
ifthe additional rework required $1,600 of
direct labor? What would be the effect on the cost of the Tramel
job?
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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 are at the customer's home, cuts the granite to that shape, and installs it. The Tramel job calls for direct materials of $2,300 and direct labor of $1,200. Overhead is applied at the rate of 120 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 $800 and direct labor costing $500. Assume that the spoilage was due to carelessness by a Frieling worker and it is considered to be normal spoilage.
Required:
Calculate the cost of the Tramel job.
$
Make any needed journal entry to the overhead control account. If an amount box does not require an entry, leave it blank.
What if the additional rework required $1,000 of direct labor? What would be the effect on the cost of the Tramel job?
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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 $2,300 and direct labor of $1,200. Overhead is applied at the rate of 120 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 $800 and direct labor costing $500. Assume that the spoilage was due to carelessness by a Frieling worker and it is considered to be normal spoilage.
Required:
Calculate the cost of the Tramel job.
Make any needed journal entry to the overhead control account. If an amount box does not require an entry, leave it blank.
What if the additional rework required $1,000 of direct labor? What would be the effect on the cost of the Tramel job?
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