Question: Tech Solutions computes its predetermined overhead rate annually based on direct labor-hours. At the beginning of the year, it estimated 65,000 direct labor-hours would be

Tech Solutions computes its predetermined overhead rate annually based on direct labor-hours. At the beginning of the year, it estimated 65,000 direct labor-hours would be required for the period's estimated level of client service. The company also estimated $487,500 of fixed overhead cost for the coming period and variable overhead of $0.50 per direct labor-hour. The firm's actual overhead cost for the year was $505,700 and its actual total direct labor was 70,900 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 for this job: Compute the total job cost for Xavier Company. Complete this question by entering your answers in the tabs below. Compute the total job cost for the Xavier Company engagement. Note: Round your intermediate calculations to 2 decimal places
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
