Cost of Normal Spoilage

Frieling Company installs granite countertops in customers' homes. First, the

customer chooses the particular granite slab, and then Frieling measures the
countertop area at the customer's home, cuts the granite to that shape, and installs
it. The Tramel job calls for direct materials of $1,900 and direct labor of $500.
Overhead is applied at the rate of 140 percent of direct labor cost. Unfortunately,
one small countertop breaks during installation and Frieling must cut another piece
and install it to properly complete the job. The additional rework required direct
materials costing $400 and direct labor costing $100. Assume that the spoilage was
due to carelessness by a Frieling worker and it is considered to be normal spoilage.

Required:

1. Calculate the cost of the Tramel job.

$ 3740

2. Make any needed journal entry to the overhead control account. If an amount
box does not require an entry, leave it blank.

3. What if the additional rework required $200 of direct labor? What would be the
effect on the cost of the Tramel job?

The cost of the Tramel job would increase by $200.