Final answer:
The job-cost sheet is a cost accounting tool for tracking all costs of a specific job, which includes materials, labor, and overhead. Using 'The Clip Joint' as an example, the total costs are calculated by adding fixed costs ($160 per day) to the variable costs, which depend on the number of barbers hired ($80 per barber per day).
Step-by-step explanation:
The job-cost sheet is a document used in cost accounting to record and accumulate all the costs assigned to a specific job. A job can be any distinct project or unit of work which can be separately identified and measured, such as manufacturing a special machine or constructing a building.
Starting from when work begins, to the job's completion, the job-cost sheet ensures that the direct materials, direct labor, and manufacturing overhead costs are accurately tracked.
In the example provided, if we consider 'The Clip Joint,' a barber shop, the total costs are comprised of both fixed and variable costs. The fixed costs, including the space and equipment rental, are constant at $160 per day. The variable costs fluctuate depending on the number of barbers hired, at $80 per day for each.
For instance, if two barbers are hired, the variable cost for the day is 2 times $80 which totals $160. To determine the total cost for the day, we add the fixed costs to the variable costs resulting in $320 ($160 fixed + $160 variable).