In December 2016, Shire Computer\'s management establishes the 2017 predetermine
ID: 2509930 • Letter: I
Question
In December 2016, Shire Computer's management establishes the 2017 predetermined overhead rate based on direct labor cost. The information used in setting this rate includes estimates that the company will incur $708,000 of overhead costs and $590,000 of direct labor cost in year 2017. During March 2017, Shire began and completed Job 13-56. 1. What is the predetermined overhead rate for 2017? 2. Using the information on the following job cost sheet, determine the total cost of the job. Complete this question by entering your answers in the tabs below Required 1 Required 2 What is the predetermined overhead rate for 2017? erhead Rate Choose Numerator: Choose Denominator: Overhead Rate = Overhead rateExplanation / Answer
1 Estimated overhead costs/Estimated direct labor = Overhead rate 708000/590000= 120% 2 Direct Materials Direct Labor Overhead Total costs Date Requisition No. Amount Time-Ticket No Amount Mar. 8 4-129 2000 T-306 640 768 3408 Mar.11 4-142 7200 T-432 1320 1584 10104 Mar. 18 4-167 3900 T-456 1260 1512 6672 13100 3220 3864 20184