Chapter 19, Problem 11E

Exercise 19-11 Overhead rate; costs assigned to jobs P3

Shire Computer's predetermined overhead rate is based on direct labor cost. Management estimates the company will incur $747_:500 of overhead costs and $575,000 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'⁷
2. Use the information on the following job cost sheet to determine the total cost of the job.
Check (2) 122,710

JOB COST SHEET

Customer's Name Keiser Co.

Job Description 5 plasma monitors—61 inch

Overhead

	Direct Materials	Direct Labor		Costs Applied
Date	Requisition No.	Amount	Time-Ticket No.	Amount	Rate Amount
Mar. 3	4-129	$5,000	T-306	$ 700
Mar. 11	4-142	7.020	T-432	1250
Mar. 13	4-167	3.330	T-456	1.250

Totals  Job No.  13-56