Aquazona Pool Company is a custom pool builder. The company recently completed a pool for the Drayna 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
Direct Materials Direct Labor Manufacturing Overhead
Req. No Amount Ticket Hours Amount Hours Rate Amount
MR 3345 $1,500 TT 335 31 $600
MR 3372 1,000 TT 340 39 800
MR 4251 1,250 TT 385 31 600
MR 4263 1,750 TT 425 34 700
MR 5236 2,000 TT 445 23 500 $7,500
158 163 $3,200
Cost Summary
Direct Materials Cost $7,590.00
Direct Labor Cost 3,341.50
Applied Manufacturing Overhead ?
Total Cost
The company applies overhead to jobs at a rate of $10.25 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 28 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.