Question
Jennifer Martin, the production manager of Fabricated Products Company entered the office of controller Joe Barnes and asked: Joe, what gives here? I was charged
Jennifer Martin, the production manager of Fabricated Products Company entered the office of controller Joe Barnes and asked: Joe, what gives here? I was charged for 330 direct labor hours on Job AD22, and my records show that we spent only 290 on that job. The 40-hour difference caused the total cost of direct labor and overhead for the job to increase by over $5,500. Are my records wrong, or was there an error in the direct labor assigned to the job? Barnes replied, Dont worry about it. This job wont be used in your quarterly performance evaluation. Job AD22 was a cost-plus contract for the federal government. We decided to add a few hours to the job in case there is some follow-up work to do. You know how fussy the feds can be.
Required: In one paragraph, identify the issues and what Ms. Martin should do?
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