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Point 1: Jennifer Martin, the production manager of Fabricated Products Company entered the office of controller Joe Barnes and asked: "Joe, what gives here? I was charged for 330 direct labor hours on Job AD22, and my records show that we spent only 290 on that job. The 40-hour difference caused the total cost of direct labor and overhead for the job to increase by over $5,500. Are my records wrong, or was there an error in the direct labor assigned to the job?"
Point 2: Barnes replied, "Don't worry about it. This job won't be used in your quarterly performance evaluation. Job AD22 was a cost-plus contract for the federal government. We decided to add a few hours to the job in case there is some follow-up work to do. You know how fussy the feds can be."
Required:
Question 1: Identify the issues and what Ms. Martin should do?
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