Question
Progressive Painting Company (PPC) is a successful company in commercial and residential painting. PPC has a variety of jobs: new construction, repair and repainting of
Progressive Painting Company (PPC) is a successful company in commercial and residential painting. PPC has a variety of jobs: new construction, repair and repainting of existing structures, and restoration of very old buildings and homes. The company is known for the quality and reliability of its work, and customers expect to pay a little more for those benefits. One of the companys core values is sustainability, and it insists on using the most environmentally friendly paints and materials in its work; it has refused jobs where the client required a more environmentally harmful paint than PPC thought was appropriate for the application. The companys commitment to sustainability has lost PPC some jobs, but it has also attracted a loyal and growing customer base. The company uses job costing and applies overhead on the basis of direct labor hours. Overhead for the company consists of painting equipment, trucks, supervisory labor, supplies, and administrative operating costs. The total budgeted costs for the year are shown below: Budgeted Data Direct materials $ 2,900,000 Direct labor hours 33,500 Direct labor dollars $ 750,000 Gallons of paint 20,000 Total overhead $ 360,125 PPC has just completed two jobs: Job Direct Materials Gallons of Paint Direct Labor Hours Direct Labor Cost Prevette $ 3,800 24 42 $ 855 Harmon 4,600 38 66 1,366 Required: 1. Determine the total cost of each job assuming that jobs include both direct and general operating costs (operating overhead). (Do not round intermediate calculations. Round your final answers to 2 decimal places.)
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