26)
In December 2016, Shire Computer’s management establishes the2017 predetermined overhead rate based on direct labor cost. Theinformation used in setting this rate includes estimates that thecompany will incur $780,000 of overhead costs and $520,000 ofdirect labor cost in year 2017. During March 2017, Shire began andcompleted Job 13-56.
1. What is the predetermined overhead rate for2017?
2. Using the information on the following job costsheet, determine the total cost of the job.
Complete this questionby entering your answers in the tabsbelow.
Required 1 Required2
What is the predetermined overhead rate for 2017?
Overhead Rate
Choose Numerator / Choose Denominator = Overhead Rate
Required 2
Using the information on the following job cost sheet, determinethe total cost of the job. (Round your answers to the nearestdollar amount.)
Job Cost Sheet: Job No. 13-56
Direct Materials Direct Labor Overhead Total Cost
Date Requisition No. Amount Time- Ticket No. Amount CostsApplied
Mar.8 4-129 $7,000 T-306 $600
Mar.11 4-142 $6,950 T-432 $1,310
Mar.18 4-167 $3,450 T-456 $1,300
