Question

cn 15 Mw (18 pts) Help Save & 2 Exercise 15-11 Overhead rate; costs assigned to jobs LO P3 In December 2016. Shiee Computer's management establishes the 2017 predetermined overhead rate based on direct lsbor cost The Information used in setting this rate includes estimates that the company will Incur $747500 ot overhead costs and $575,000 of direct abor cost in year 2017. During March 2017, Shire began and completed Job 13-56. 1 What is the predetermined overhead rate for 20177 2Using the informasion on the following job cost sheet, determine the total cost of the job. Complete this question by entering your answers in the tabs below Required 1 Required 2 Using the information on the following job cost sheet, determine the total cost of the jotb. Drect Matris Direct Laber No. Amount Coests MacBook Pro 2 3 45 67 8 90 0

Answer 1

1) Predetermined Overhead rate = 130%

Working: Estimated overhead costs / Estimated direct labor = Overhead rate

747,500 / 575,000 = 130%

2) Solution: Total cost of the job: $22,710

Working:

	Direct materials		Direct labor		Overheads
Date	Req No.	Amount	Time Ticket No.	Amount	Costs applied	Total cost
Mar-05	4-129	5,000	T-306	700	910	6,610
Mar-11	4-142	7,020	T-432	1,250	1625	9,895
Mar-18	4-167	3,330	4-456	1,250	1625	6,205
		15,350		3,200	4,160	22,710