Tech Solutions computes its predetermined overhead rate annually based on direct labor - hours. At the beginning of the year, it estimated 50,000 direct labor - hours would be required for the period's estimated level of client service. The company also estimated $ 225,000 of fixed overhead cost for the coming period and variable overhead of $0.50 per direct labor - hour. The firm's actual overhead cost for the year was $238, 100 and its actual total direct labor was 53, 100 hours. Required: 1. Compute the predetermined overhead rate. 2. During the year, Tech Solutions started and completed the Xavier Company engagement. The following information was available for this job: Direct materials $ 44, 850 Direct labor cost $ 28, 200 Direct labor - hours worked 200 Compute the total job cost for Xavier Company.

Tech Solutions computes its predetermined overhead rate annually based on direct labor - hours. At the beginning of the year, it estimated 50,000 direct labor - hours would be required for the period's estimated level of client service. The company also estimated $ 225,000 of fixed overhead cost for the coming period and variable overhead of $0.50 per direct labor - hour. The firm's actual overhead cost for the year was $238, 100 and its actual total direct labor was 53, 100 hours. Required: 1. Compute the predetermined overhead rate. 2. During the year, Tech Solutions started and completed the Xavier Company engagement. The following information was available for this job: Direct materials $ 44, 850 Direct labor cost $ 28, 200 Direct labor - hours worked 200 Compute the total job cost for Xavier Company.

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Description: Tech Solutions computes its predetermined overhead rate annually based on direct labor -hours. At the beginning of the year, it estimated 50,000 direct labor - hours would berequired for the period's estimated level of client service. The company al

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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