Question
Stanley Company installs granite countertops in customers' homes. First, the customer chooses the particular granite slab, and then Stanley measures the countertop area at the
Stanley Company installs granite countertops in customers' homes. First, the customer chooses the particular granite slab, and then Stanley measures the countertop area at the customer's home, cuts the granite to that shape, and installs it. The Flores job calls for direct materials of $2,600 and direct labor of $700. Overhead is applied at the rate of 160 percent of direct labor cost. Unfortunately, one small countertop breaks during installation and Stanley must cut another piece and install it to properly complete the job. The additional rework required direct materials costing $900 and direct labor costing $250. Assume that the spoilage was due to carelessness by a Stanley worker and it is considered to be normal spoilage.
Required:
1. Calculate the cost of the Flores job.
$4,420
2. Make any needed journal entry to the overhead control account. If an amount box does not require an entry, leave it blank.
Overhead Control | ? | 0 | |
Materials | 0 | 900 | |
Payroll | 0 | 250 |
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