Aquazona Pool Company is a custom pool builder. It recently completed a pool for the Drayna family (Job 1324) as summarized on the following incomplete job cost sheet.

Aquazona Pool Company is a custom pool builder. It recently completed a pool for the Drayna family (Job 1324) as summarized on the following incomplete job cost sheet.

Job Cost Sheet
Job Number	1324
Date Started: 7/12/2010
Date Completed:
Description:	Drayna Pool
									Applied
Direct Materials				Direct Labor					Manufacturing Overhead
Req. No	Amount			Ticket	Hours		Amount			Hours	Rate	Amount
MR 3345	$	1,570		TT 335	33		$	686.4
MR 3372		1,070		TT 340	43			894.4
MR 4251		1,200		TT 385	29			603.2
MR 4263		1,700		TT 425	35			728
MR 5236		1,980		TT 445	26			540.8
	$	7,520			166		$	3,452.8		?	?	?
		Cost Summary
Direct Materials Cost							$	7,520
Direct Labor Cost								3,452.8
Applied Manufacturing Overhead								?
Total Cost

The company applies overhead to jobs at a rate of $10.4 per direct labor hour.

Requirement 1:

Calculate how much overhead would be applied to Job 1324. (Round your answer to 2 decimal places. Omit the "$" sign in your response.)

 

Applied manufacturing overhead

$ 1,726.4

Explanation:

Applied manufacturing overhead = Predetermined overhead rate × Actual value of allocation base

Applied manufacturing overhead = $10.4 × 166 Direct labor hours = $1,726.4

 

Requirement 2:

Compute the total cost of Job 1324. (Round your answer to 2 decimal places. Omit the "$" sign in your response.)

Total cost

$ 12,699.2

Explanation:

 

Direct materials	$	7,520
Direct labor		3,452.8
Applied manufacturing overhead		1,726.4
Total manufacturing cost	$	12,699.2
Requirement 3:
Assume the company bids its pools at total manufacturing cost plus 29 percent. If actual costs were the same as estimated, determine how much revenue the company would report on the sale of Job 1324. (Round your answer to 2 decimal places. Omit the "$" sign in your response.)

 

Revenue

$ 16,381.96

Explanation:

Revenue = 129% of total manufacturing cost

Revenue = 1.29 × $12,699.2 = $16,381.97

Requirement 4:

Calculate how much gross profit Aquazona made on the sale of the Drayna pool. (Round your answer to 2 decimal places. Omit the "$" sign in your response.)

 

Gross profit

$ 3,682.76

Explanation:

Gross profit = Sales revenue – Cost of goods sold

Gross profit = $16,381.97 – $12,699.2 = $3,682.77