Question

Progressive Painting Company (PPC) is a successful company in commercial and resident painting. PPC has a variety of jobs: new construction, repair, and repeating existing structures, and restoration of the very old building and homes. The company is known for the quality and reliability of its work and customers expect to pay a little more for those benefits. One of the company's core values is sustainability and it insists on using the most environmentally friendly paints and materials in its work; it has refused a job where the client required more environmentally harmful paint than PPC thought was appropriate for the application for the application. The company's commitment to sustainability has lost PPC some jobs, but it has also attracted a loyal and growing base.

The company uses job costing and applies overhead on the basis of direct labor hours. Overhead for the company consists of painting equipment, trucks, supervisory labor, supplies, and administrative operating costs. The total budgeted costs for the year are shown below

Budgeted Data

Direct Materials 2,900,000

Direct labor- hour 33500

Direct labor dollar 750,000

Gallon of paint 20,000

total budget   360,000

Job P Job H

Direct Material 3,800 Direct Material 4000

Gallon of Paint 24 Gallon of Paint 38

Direct Labor Hour 42 Direct Labor Hour 66

Direct Labor Cost 855 Direct Labor Cost 1,366

Determine the total cost of each job?

p

h

Answer 1