Question

I need both required parts

In December 2016, Shire Computer's management establishes the 2017 predetermined overhead rate based on direct labor cost. The information used in setting this rate includes estimates that the company will incur $714,000 of overhead costs and $510,000 of direct labor cost in year 2017. During March 2017, Shire began and completed Job 13-56. 1. What is the predetermined overhead rate for 2017? 2. Using the information on the following job cost sheet, determine the total cost of the job. 10 points Complete this question by entering your answers in the tabs below. eBook Required 1 Required 2 What is the predetermined overhead rate for 2017? Hint Overhead Rate Choose Denominator: Choose Numerator: I = Print Overhead Rate Overhead rate = References Required 1 Required 2 )

Answer 1

1) Overhead rate

Estimated overhead	/	Estimated labor cost	=	Overhead rate
714000	/	510000	=	140% of labor cost

Note : 2 Point information is not given in question