Question

Shire Computer’s predetermined overhead rate is based on direct labor cost. Management estimates the company will incur $550,000 of overhead costs and $500,000 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 Numerator:	/	Choose Denominator:	=	Overhead Rate
Estimated overhead cost	/	Estimated labor cost	=	Overhead rate
	/		=	0

• 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 job. (Round your answers to the nearest dollar amount.)

  	JOB COST SHEET
  Customer’s Name: Keiser Co.					Job No: 13-56
  Job Description: 5 plasma monitors—61 inch
  	Direct Materials		Direct Labor		Overhead	Total Cost
  Date	Requisition No.	Amount	Time-Ticket No.	Amount	Costs Applied
  Mar. 8	4-129	$3,000	T-306	$640
  Mar. 11	4-142	6,650	T-432	1,310
  Mar. 18	4-167	3,900	T-456	1,340

Answer 1

Requirement 1:

Overhead Rate
Choose Numerator:	/	Choose Denominator:	=	Overhead Rate
Estimated overhead cost	/	Estimated labor cost	=	Overhead rate
$550,000	/	$500,000	=	$1.10

Requirement 2:

Calculations: