Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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 $1,000. Overhead is applied at the rate of 110 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 $1,100 and direct labor costing $800.

Assume that the spoilage was due to the inherently fragile nature of the piece of stone picked out by the Flores family. Stanley had warned them that the chosen piece could require much more care and potentially additional work. As a result, Stanley considers this spoilage to be caused by the Flores' job.

1. Calculate the cost of Flores Job.

3. What if the additional rework required $1,600 of direct labor? What would be the effect on the cost of the Flores job?

If the additional rework required $1,600 of direct labor rather than $800, then the total cost of the Flores job would increase by to .

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 Information Systems Connecting Careers Systems And Analytics

Authors: Arline A. Savage, Danielle Brannock, Alicja Foksinska

1st Edition

1119744474, 9781119744474

More Books

Students also viewed these Accounting questions