Thoni Manufacturing has gathered information from materials requisition sheets and labor time sheets for several jobs worked on during the last month and needs to calculate the job costs.

Required

a. Use the SUMIF function to calculate the direct materials cost added to each job during the month. You will find the data in the materials tab of the data worksheet.

b. Use the SUMIF function to calculate the direct labor cost added to each job during the month. You will find the data in the labor tab of the data worksheet. You will need to use the VLOOKUP function to find employee wage rates in the wage rate tab of the worksheet. Remember that time data is expressed in hours and minutes, while the wage rate is expressed on an hourly basis. You will need to convert minutes worked to their decimal equivalent before making the direct labor calculation. You may find the HOUR and MINUTE functions helpful for this calculation (HOUR(cell reference) + MINUTE(cell reference))/60.

c. Thoni Manufacturing uses direct labor hours to apply manufacturing overhead. The predetermined overhead rate is $200/DLH. Apply overhead to each job and calculate the total job costs for the month.

d. Charlie Anderson, Thoni's CFO, is concerned that some employees may not be appropriately recording the time worked on specific jobs. Sort the labor time tickets by time worked. What do you notice?

e. What other information would help Charlie evaluate the appropriateness of the time recorded?