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During May, Coronado is approached by the owner of Mountain Estates who would like to contract with Coronado's company. Coronado is working to prepare
During May, Coronado is approached by the owner of Mountain Estates who would like to contract with Coronado's company. Coronado is working to prepare the bid for Mountain Estates and has the following information: Direct materials, $10,840 and Landscaper hours, 125 hours. Analyze the financial information provided for Southside, Oceanview and Rocky Heights and help Coronado complete his bid by estimating the total cost of the Mountain Estates job. Assume that the labor rate will remain the same for the purposes of the estimate. Total estimated costs Coronado's Lawn Services provides custom landscaping for homes and businesses and uses job order costing to capture the cost of its landscaping jobs. There are no jobs in process at the beginning of May. Listed below are data concerning the three landscaping jobs conducted during May. Direct materials Landscaper labor costs Landscaper hours Southside Oceanview Rocky Heights $5,790 $7,050 $4,686 $6,138 71 $7,850 $5,874 89 93 Overhead costs are applied to jobs on the basis of landscaper hours, and the predetermined overhead rate is $64 per landscaper hour. The Southside job is the only incomplete job at the end of May. Actual overhead for the month was $16,542.
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