Question

1. Assume that Sprinturf uses a job order costing system. For the three basic cost categories of direct materials, direct labor, and overhead, identify at least two typical costs that would fall into each category for Sprinturf.
2. Assume a local high school expresses an interest in purchasing a synthetic field installation from Sprinturf. The high school’s budget will allow them to pay no more than $600,000 for the field. How can Sprinturf use job cost information to assess whether to pursue this opportunity?

Answer 1

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