Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Whitley Construction Company is in the home remodeling business. Whitley has three teams of highly skilled employees, each of whom has multiple skills involving carpentry,

image text in transcribed
image text in transcribed
image text in transcribed
Whitley Construction Company is in the home remodeling business. Whitley has three teams of highly skilled employees, each of whom has multiple skills involving carpentry, painting, and other home remodeling 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 Whitley 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 Whitley'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. Whitley uses an annual overhead rate based on direct labor hours. Whitley has recently completed work for three clients: Harrison, Barnes, and Tyler. The cost data for each of the three jobs are summarized below: Job Direct Direct Labor Direct Labor Materials Hours Cost Harrison $ 6,768 40 $ 15,399 Barnes 13,244 70 22,306 Tyler 42,466 120 49,776 Budgeted direct materials cost and direct labor cost for the year are estimated at $455,000 and $610,000, respectively. Direct labor hours are budgeted at 23,000 hours, and total overhead is budgeted at $460.000, Required: 1. Calculate the total cost of each of the three jobs. 2. Suppose that for the entire year, Whitley used 24,300 labor hours and total actual overhead was $492,000. What is the amount of underapplied or overapplied overhead? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required: 1. Calculate the total cost of each of the three jobs. 2. Suppose that for the entire year. Whitley used 24.300 labor hours and total actual overhead was $492.000. What is the amount of underapplied or overapplied overhead? Complete this question by entering your answers in the tabs below. Reglared : Required 2 Calculate the total cost of each of the three Jobs. Hamson Barnes Tylor Total Job Cost S 22.967 $ 36,950 $ 94,542 Required Required 2 >

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_2

Step: 3

blur-text-image_3

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

College Accounting, Chapters 1-15

Authors: James A. Heintz, Robert W. Parry

21st Edition

1285639723, 9781285639727

More Books

Students also viewed these Accounting questions