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Soal 4(20%) Warrior Construction Company is in the home design business. Warrior has three teams of highly skilled employees, each of whom has multiple skills
Soal 4(20%) Warrior Construction Company is in the home design business. Warrior has three teams of highly skilled employees, each of whom has multiple skills involving pentry, painting, and other home design 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. Warrior 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 Warrior's 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. Warrior uses an annual overhead rate based on direct labor hours. Warrior has recently completed work for three clients: Ladison, Garnes, and Cyler. The cost data for each of the three jobs are summarized below: Budgeted direct materials cost and direct labor cost for the year are estimated at $450,000 and $600,000, respectively. Direct labor hours are budgeted at 23,500 hours, and total overhead is budgeted at $517,000. Required a. Calculate the total cost of each of the three jobs. (6\%) b. Suppose that for the entire year, Warrior used 24,800 labor hours and total actual overhead was $550,000. What is the amount of underapplied or overapplied overhead? (4%) c. Warrior's business is affected by season, with spring being the period of high activity and low activity in winter. Explain how this condition potentially affect the job costing at the company? (5%) d. Warrior has chosen direct labor hours as the cost-driver base for applying overhead. What is other alternative for cost driver, and why you choose it? (5%)
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