The direct labor costs have also been identified precisely which show direct relationship with a company’s job. Overheads assigned during installation of turfs are appropriately indicated with reference to supervisor compensation, travelling and delivery expenses. In reply to the second question the student quite effectively explains how Sprinturf may use job order costing information to analyze a project. The factors that help in determining the cost and selling price of a project for Sprinturf are identified to provide a basis for acceptance or rejection of a project.
A weakness in reply to the first question is that a basic ideology or description of job order costing with reference to three categories of direct material, direct labor and overheads has not been presented. An overview of the concept would help in creating a link between jobs and costs related to these jobs (Hilton, 2005).
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