The Meyers CPA firm has the following overhead budget for the year: Overhead Indirect materials. Indirect...
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The Meyers CPA firm has the following overhead budget for the year: Overhead Indirect materials. Indirect labor Depreciation-Building Depreciation-Furniture Utilities Insurance Property taxon Other expenses Total: Gargus account Direct labor The firm estimates total direct labor cost for the year to be $1,961,250. The firm uses direct labor cost as the cost driver to apply overhead to clients. During January, the firm worked for many clients; data for two of them follow: Feller account Direct labor $ 3,600 $ 9,600 $410,000 1,765,000 315,000 47,000 340,000 45,000 59,000 157,000 $3,138,000 Required: 1. Compute the firm's predetermined overhead rate. 2. Compute the amount of overhead to be charged to the Gargus and Feller accounts using the predetermined overhead rate calculated in requirement 1. 3. Compute total job cost for the Gargus account and the Feller account. Required 1 Required 2 Required 3 Complete this question by entering your answers in the tabs below. Predetermined overhead rate Compute the firm's predetermined overhead rate. % Required 1 Required 2 > The Meyers CPA firm has the following overhead budget for the year: Overhead Indirect materials. Indirect labor Depreciation-Building Depreciation-Furniture Utilities Insurance Property taxon Other expenses Total: Gargus account Direct labor The firm estimates total direct labor cost for the year to be $1,961,250. The firm uses direct labor cost as the cost driver to apply overhead to clients. During January, the firm worked for many clients; data for two of them follow: Feller account Direct labor $ 3,600 $ 9,600 $410,000 1,765,000 315,000 47,000 340,000 45,000 59,000 157,000 $3,138,000 Required: 1. Compute the firm's predetermined overhead rate. 2. Compute the amount of overhead to be charged to the Gargus and Feller accounts using the predetermined overhead rate calculated in requirement 1. 3. Compute total job cost for the Gargus account and the Feller account. Required 1 Required 2 Required 3 Complete this question by entering your answers in the tabs below. Predetermined overhead rate Compute the firm's predetermined overhead rate. % Required 1 Required 2 >
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Related Book For
Cost Management A Strategic Emphasis
ISBN: 978-0077733773
7th edition
Authors: Edward Blocher, David Stout, Paul Juras, Gary Cokins
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