Business, 12.02.2021 23:20 sheilaaguilar2014

Tech Solutions computes its predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year, it estimated that 92,500 direct labor-hours would be required for the period’s estimated level of client service. The company also estimated $1,156,250 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 $1,177,550 and its actual total direct labor was 97,750 hours. 1. Compute the predetermined overhead rate.

2. During the year, Tech Solutions started and completed the Xavier Company engagement. The following information was available with respect to this job:
Direct materials: $39,000
Direct labor cost: $30,600
Direct labor hours worked: 370
find total job cost
Direct materials: ?
Direct labor: ?
Overhead applied: ?
Total manufacturing cost: ?

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Tech Solutions computes its predetermined overhead rate annually on the basis of direct labor-hours....

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