ould it be treated What is the price of Job 705? goods and clothing. In a back room. teams. OBJECTIVE 6 Problem 5.31 Cost of Reworked Units Warren's Sporting Goods Store sells of sporting T-shirts for Leag Last set up heat transfer equipment to the of the team Typically, each the name of the individual player put on for her team. Heather team has a list of names week, Shona Kohlmia, c ach the Terrors, in Katie, Tara. a consisted of 12 players with the following names: Mary Kate. Kayla. quoted Jennifer, Dayna, Elizabeth. Kyle, and Wendy. Shona was of $0.60 per letter worked o the j He Chip Russell, Warren's newest employee, took shona's order and heat. selected the appropriate letters, arranged the letters in each name carefully on a shirt, an the pressed them on. When Shona returned, she was appalled to see that the names were on ol front of the shirts. Jim Warren, owner of the sporting goods store, assured Shona that the letters could easily be removed by applying more heat and lifting them of. This process to correct. letters, letters must then be placed correctly on the shirt backs. He ised promi immediately and have it ready in an hour and a half. Chapter 5 Product and Service Costing: Job-Order System Costs for heat transferring are as follows: $0.45 Letters (each) Direct labor (per hour) Overhead (per direct labor hour) Shona's job originally took one hour and 12 minutes of direct labor time. The removal pro- ess goes more quickly and should take only 30 minutes Required What was the original cost of Shona's job? to ask whether t What is the cost of rework on Shona's job? Assume that Chip failed names should be placed on the back or the front of the shirts. How should the rework cost be treated? the front of the Now assume that shona had mistakenly told Chip to put the names on pay only for the shirts. In an effort to keep his customer happy, Jim suggested that Shona new and the firm would pay for the labor cost. How much did Jim charge Shona in addition to the orginal price of the job? OBJECT