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The Teal Company manufactures customized fabric yarns on a job-order basis. Job 450 is an order for 150 units. It requires the following: ? Direct
The Teal Company manufactures customized fabric yarns on a job-order basis. Job 450 is an order for 150 units. It requires the following: ? Direct materials $4,000 Direct labor ($10/hr) 2,000 Overhead (150 percent of direct labor cost) 3,000 ? After inspection, 3 units required rework which required 6 additional direct labor hours and $50 of materials. If the spoilage was considered normal, what is the cost of job 450? a. $9,000 b. $7,000 c. $11,000 d. $5,000
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