Quality Exteriors Installs Stucco on High-Priced Custom Homes, Using the Time-And-Materials

question 40

Essay

Quality Exteriors installs stucco on high-priced custom homes, using the time-and-materials method to price jobs for individual builders. Quality anticipates using $250,000 of materials during the year and will incur $15,000 for material handling and storage. Other overhead costs, which are driven by the company's 18,000 direct labor hours, will total $360,000. Quality pays construction crews $17 per labor hour and adds a markup of $19 per hour on its time charges. There is no profit markup on material cost.
During the first quarter of the year, Quality performed 24 jobs for Don Henderson Builders, using 3,100 labor hours and $72,000 of materials.
Required:
Calculate the amount that Quality would bill Don Henderson Builders for work performed.

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Definitions:

Cash Dividend

A cash dividend is a payment made by a company out of its earnings to shareholders in the form of cash.

Financial Position

A snapshot of the resources a company controls and its obligations at any given time, indicating its economic standing.

Stock Dividend Distributable

A declaration by a company’s board of directors to issue a dividend in the form of additional shares rather than cash.

Shareholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities; represents ownership interest.