Question

Exercise 15-11 Overhead rate; costs assigned to jobs LO P3 Shire Computer's predetermined overhead rate is based on direct labor cost. Management estimates the company will incur $708,000 of overhead costs and $590,000 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. > Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 What is the predetermined overhead rate for the year? Choose Numerator Estimated overhead cost Overhead Rate Choose Denominator: Estimated labor cost = = Overhead Rate Overhead rate ! Required 1 Required 2 >

Answer 1

1) Overhead rate

Choose numerator	/	Choose denominator	=	Overhead rate
Estimated overhead	/	Estimated direct labor cost	=	Overhead rate
708000	/	590000	=	120% of labor cost

2) Job Cost sheet

	Direct material		Direct labor		Overhead	Total Cost
Date	Requisition No	Amount	Time ticket No	Amount	Cost applied
Mar 8	4-129	4000	T-306	690	828	5518
Mar 11	4-142	7250	T-432	1310	1572	10132
Mar 18	4-167	3900	T-456	1270	1524	6694
		15150		3270	3924	22344