In December 2014, Shire Computer\'s management establishes the 2015 predetermine
ID: 2514560 • Letter: I
Question
In December 2014, Shire Computer's management establishes the 2015 predetermined overhead rate based on direct labor cost. The information used in setting this rate includes estimates that the company will incur $922,200 of overhead costs and $580,000 of direct labor cost in year 2015. During March 2015, Shire began and completed Job No. 13-56 1. What is the predetermined overhead rate for year 2015? erhead Rate Choose Numerator: Choose Denominator: Overhead Rate Overhead rate 2. Compute the job cost sheet. (Round your answer to two decimal places.) JOB COST SHEET: Job 13-56 Direct Materials Direct Labor Overhead Total Cost Costs Applied Date Mar. 8 Mar. 11 Mar. 18 Requisition No. 4-129 4-142 4-167 Amount Time-Ticket No. Amount $5,000 T-306 6,550 T-432 3,800 T-456 $680 1,310 1,270Explanation / Answer
1 Estimated overhead costs/Estimated direct labor=Overhead rate 922200/580000= 159% 2 Direct Materials Direct Labor Overhead Costs Applied Total cost Date Requisition No. Amount Time-Ticket No Amount Mar. 8 4-129 5000 T-306 680 1081.20 6761.20 Mar. 11 4-142 6550 T-432 1310 2082.90 9942.90 Mar. 18 4-167 3800 T-456 1270 2019.30 7089.30 15350 3260 5183.40 23793.4