In December 2008, Matsushi Electronics' management establishes the year 2009 predetermined overhead rate based on direct labor cost. The information used in setting this rate includes estimates that the company will incur $750,000 of overhead costs and $500,000 of direct labor cost in year 2009. During March 2009, Matsushi began and completed Job No. 13-56.

1. What is the predetermined overhead rate for year 2009?

2. Use the information on the following job cost sheet to determine the total cost of thejob.

Transcribed Image Text:

JOB COST SHEET Customer's Name ESPN Co. Job No. 13-56 Job Description monitors-I50 Inch Overhead Direct Materials Direct Labor Costs Applied Date Requisition No. Amount Time-Ticket No. Amount Rate Amount Mar 8 Mar. II Mar. 18 Totals 4-129 4-142 4-167 $4,000 7.450 3.800 T-306 T-432 T-456 S 680 .280 1.320