Progressive Painting Company (PPC) is a successful company in commercial and residential painting. PPC has a variety of jobs: new construction, repair and repainting existing structures, and restoration of very old buildings 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 jobs where the client required a more environmentally harmful paint than PPC thought was appropriate for the application. The company's commitment to sustainability has lost PPC some jobs, but it has also attracted a loyal and growing customer 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 operation costs. The total budgeted costs for the year are shown below
Budgeted Data
Direct materials $2,970,000
Direct labor hours 35,000
Direct labor dollars $785,000
Gallons of paint 27,000
Total overhead $367,500
PPC has just completed two jobs:
Job Direct Materials Gallons of Paint Direct Labor Hours Direct Labor Cost
Prevette $4,500 32 48 $890
Harmon 5,300 46 72 1,450
Required:
1. Determine the total cost of each job. (Do not round intermediate calculations. Round your final answers to 2 decimal places.
Total Job Cost
Prevette
Harmon