Bridal Treasures Inc. makes customized wedding gowns. The customer selects a pattern for the basic gown and then selects fabric and trim. Once the design and the materials have been agreed upon a Statement of Estimated Cost is signed by the company and by the customer.
Overhead is applied based on the number of days a gown is in process. Usually five gowns are being worked on at a time. Therefore each gown is charged 1/5 of a daily estimated overhead amount.
Customer Mary Landon's wedding dress took four days to complete. However after the first three days had elapsed Hanna Hunt a movie personality suddenly decided to get married and ordered a very lavish gown. All other work was suspended and the work on Ms. Landon's dress was delayed six days. The final day of its construction was on the tenth day after it had been begun.
Required:
You are the accounting manager for Bridal Treasures. Write a memo to the billing department. Instruct them as to the appropriate number of overhead days to charge to Ms. Landon's account.

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The Answer of Bridal Treasures Inc. makes customized wedding gowns. The customer selects a pattern for the basic gown and then selects fabric and trim. Once the design and the materials have been agreed upon a Statement of Estimated Cost is signed by the company and by the customer.
Overhead is applied based on the number of days a gown is in process. Usually five gowns are being worked on at a time. Therefore each gown is charged 1/5 of a daily estimated overhead amount.
Customer Mary Landon's wedding dress took four days to complete. However after the first three days had elapsed Hanna Hunt a movie personality suddenly decided to get married and ordered a very lavish gown. All other work was suspended and the work on Ms. Landon's dress was delayed six days. The final day of its construction was on the tenth day after it had been begun.
Required:
You are the accounting manager for Bridal Treasures. Write a memo to the billing department. Instruct them as to the appropriate number of overhead days to charge to Ms. Landon's account.