Please help with 2-6 & 2-7!

EXERCISE 2-6 Job-Order Costing for a Service Company LO2-1, LO2-2. 102-3 Tech Solutions is a consulting firm that uses a job-order costing system. Its direct materials consist of hardware and software that it purchases and installs on behalf of its clients. The firm's direct labor includes salaries of consultants that work at the client's job site, and its overhead consists of costs such as depreciation, utilities, and insurance related to the office headquarters as well as the office supplies that are consumed serving clients. Tech Solutions computes its predetermined overhead rate annually on the basis of direct labor- hours. At the beginning of the year, it estimated that 80,000 direct labor-hours would be required for the period's estimated level of client service. The company also estimated $680,000 of fixed overhead cost for the coming period and variable overhead of $0.50 per direct labor-hour. The firms actual overhead cost for the year was $692,000 and its actual total direct labor was 83,000 hours. Required: 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 Direct labor cost $38,000 $21,000 280 Compute the total job cost for the Xavier Company engagement. EXERCISE 2-7 Job-Order Costing: Working Backwards LO2-1, LO02-2, LO2-3 Hahn Company uses a job-order costing system. Its plantwide predetermined overhead rate uses direct labor-hours as the allocation base. The company pays its direct laborers $15 per hour. During the year, the company started and completed only two jobs-Job Alpha, which used 54,500 direct labor-hours, and Job Omega. The job cost sheets for these two jobs are shown below: Job Alpha Direct labor Manufacturing overhead appiled Total job cost.. $1.533,500 Job Omega Direct materials Direct labor... 235,000 $764,000 Required Calculate the plantwide predetermined overhead rate. Complete the job cost sheet for Job Alpha. 2