Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please show steps how to answer this question Whitley Construction Company is in the home remodeling business. Whitley has three teams of highly skilled employees,

please show steps how to answer this question
Whitley Construction Company is in the home remodeling business. Whitley has three teams of highly skilled employees, each of whom has multiple skills involving carpentry, painting, and other home remodeling activities. Each team is led by an experienced employee who coordinates the work done on each job. As the needs of different jobs change, some team members may be shifted to other teams for short periods of time. Whitley uses a job costing system to determine job costs and to serve as a basis for bidding and pricing the jobs. Direct materials and direct labor are easily traced to each job using Whitleys cost tracking software. Overhead consists of the purchase and maintenance of construction equipment, some supervisory labor, the cost of bidding for new customers, and administrative costs. Whitley uses an annual overhead rate based on direct labor hours.
Whitley has recently completed work for three clients: Harrison, Barnes, and Tyler. The cost data for each of the three jobs are summarized below:
Job Direct Materials Direct Labor Hours Direct Labor Cost
Harrison $ 6,91845 $ 15,719
Barnes 13,3949023,526
Tyler 43,74615050,996
Budgeted direct materials cost and direct labor cost for the year are estimated at $505,000 and $710,000, respectively. Direct labor hours are budgeted at 28,000 hours, and total overhead is budgeted at $840,000.
Required:
1. Calculate the total cost of each of the three jobs.
2. Suppose that for the entire year, Whitley used 29,300 labor hours and total actual overhead was $872,000. What is the amount of underapplied or overapplied overhead?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Ethics

Authors: Ronald F. Duska, Brenda Shay Duska, Kenneth Wm. Kury

3rd Edition

1119118786, 9781119118787

More Books

Students also viewed these Accounting questions