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Question & Answer: The information used in setting this rate includes estimates that the company will incur $852,600 of overhead…..

In December 2014, Shire Computer’s management establishes the 2015 predetermined overhead rate based on direct labor cost. The information used in setting this rate includes estimates that the company will incur $852,600 of overhead costs and $580,000 of direct labor cost in year 2015. During March 2015, Shire began and completed Job No. 13-56.

 

1. What is the predetermined overhead rate for year 2015?
Overhead Rate
Choose Numerator: / Choose Denominator: = Overhead Rate
/ = Overhead rate
/ =
2. Compute the job cost sheet. (Round your answer to the nearest dollar amount.)
JOB COST SHEET: Job 13-56
Direct Materials Direct Labor Overhead Total Cost
Date Requisition No. Amount Time-Ticket No. Amount Costs Applied
Mar. 8 4-129 $5,000 T-306 $670
Mar. 11 4-142 7,250 T-432 1,320
Mar. 18 4-167 3,750 T-456 1,330

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