Question

Shire Computer's predetermined overhead rate is based on direct labor cost. Management estimates the company will incur $676,000 of overhead costs and $520,000 of direct labor cost for the year. During March, Shire began and completed Job 13-56. 1. What is the predetermined overhead rate for the year? 2. Use the information on the following job cost sheet to determine the total cost of the job. Complete this question by entering your answers in the tabs below. Required 1 Required 2 What is the predetermined overhead rate for the year? Overhead Rate Choose Denominator: Choose Numerator: Overhead Rate Overhead rate Required 2 >

Answer 1

Solution Shire Computers 1. Predetermened Queake ad Rate z Queahead Cats of the year Direct labour Cost of the year 2 $ 676,000 2 81,3 hea Direct labour lost $ 520,000 Tob Cast Sheet Customea's Name : Keisea to. Job Description: 5 plasma monitors 6liuch Job No 813-56 Date Mar- 8 1 Dicent Materials Direct labour! Queshead / Requisition No. Amant Time - Amount Overhead Totel last Ticket Mo Cost Applied - | 4-129 $3,000 T-306 | $650 $845 4495 (650x 1.3) 4-142 87200 T-432 $1260 $ 1638 10088 | (1260x1.3) 4-167 $3950 T-456 $1260 $ 1638 1 6,848 (1260x1.3) Mar 11 Mar 18 $ 14, 150 $3170 $4121 $21460 | (3170 x 1.3)