In December 2012, Shire Computers management establishes the year 2013 predetermined overhead rate based on direct labor

In December 2012, Shire Computer’s management establishes the year 2013 predetermined overhead rate based on direct labor cost. The information used in setting this rate includes estimates that the company will incur $ 747,500 of overhead costs and $ 575,000 of direct labor cost in year 2013. During March 2013, Shire began and completed Job No. 13-56.

1. What is the predetermined overhead rate for year 2013?
2. Use the information on the following job cost sheet to determine the total cost of thejob.

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JOB COST SHEET Customer's Name Keiser Co. Job No. 13-56 Job Description 5 plasma monitors61 inch 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 $5,000 7,020 3.330 T-306 T-432 T-456 700 1,250 1,250