Question

# Shire Computer’s predetermined overhead rate is based on direct labor cost. Management estimates the company will...

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.

• 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

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: