The Meyers CPA firm has the following overhead budget for the year:

Overhead

Indirect materials........................$ 300,000

Indirect labor.............................1,600,000

Depreciation-Building..................293,000

Depreciation-Furniture...................25,000

Utilities.....................................285,000

Insurance.....................................34,000

Property taxes................................48,000

Other expenses............................,135,000

Total.....................................$2,720,000

The firm estimates total direct labor cost for the year to be $1,700,000. 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:

Gargus account Direct labor....................$2,500

Feller account Direct labor.....................$8,500

Required

1. Compute the firm's budgeted 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.