In December 2010, Kent Computers management establishes the year 2011 predetermined overhead rate based on direct labor cost. The information used in setting this rate

In December 2010, Kent Computer’s management establishes the year 2011 predetermined overhead rate based on direct labor cost. The information used in setting this rate includes estimates that the company will incur $756,000 of overhead costs and $540,000 of direct labor cost in year 2011. During March 2011, Kent began and completed Job No. 13-56.

1. What is the predetermined overhead rate for year 2011?

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

JOB COST SHEET Customer's Name Keiser Co. Job No. 13-56 Job Description 5 color monitors-21 incih Overhead Costs Applied Direct Materials Direct Labor Date Requisition No. Amount Time-Ticket No. Amount Rate Amount Mar. 8 Mar. II Mar. 18 Totals 4-129 4-142 4-167 T-306 T432 T-456 $ 640 1.280 1,280 $5,000 7,050 3,550