Question

Please don't use hand writing because its hard for me to understand most hand writing. Please type, etc. Please explain how it works.

Aquazona Pool Company is a custom pool builder. The company recently completed a poor for the Brayna family (Job 1324) as summarized on the incomplete Job cost sheet below. Job Cost Sheet Job Number: 1324 Date Started: 7/8/2018 Date Completed: 8/30/2018 Description: Drayna Pool Applied Manufacturing Overhead Hours Rate Amount Direct Materials Req. No Amount MR 3345 $ 1,540 MR 3372 1,79 MR 4251 1,199 MR 4263 1,690 MR 5236 1,970 $ 7,460 Direct Labor Ticket Hours Amount TT 335 23 $ 443.98 TT 340 945.70 TT 385 28 548.40 TT 425 540.40 TT 445 424.60 150 $2,895.00 Cost Summary $7,468.00 2,895.00 Direct Materials Cost Direct Labor Cost Applied Manufacturing Overhead Total Cost The company applies overhead to jobs at a rate of $9.65 per direct labor hour. Required: 1. Calculate how much overhead would be applied to Job 1324. 2. Compute the total cost of Job 1324. 3. Assume the company bids its pools at total manufacturing cost plus an additional 36 percent. If actual costs were the same as estimated, determine how much revenue the company would report on the sale of Job 1324. 4. Calculate how much gross profit Aquazona made on the sale of the Drayna pool, before any adjustment for over- or underapplied manufacturing overhead.

Thank you.

Answer 1

Solution 1:

Applied manufacturing overhead = direct labor hours* overhead rate = 150*$9.65 = $1447.50

Solution 2:

Total cost = 7460 + 2895 + 1447.50 = $11,802.50

Solution 3:

Revenue = total costs *136% = $11802.50*136% = $16,051.40

Solution 4:

Gross profit = Revenue - total cost = 16051.40 - 11802.50 = $4,248.90