Leeds Architectural Consultants began operations on January 2. The following activity was recorded in the company?s work-in-process account for the first month of operations:

Leeds Architectural Consultants is a service firm; thus, the names of its accounts differ from those used in manufacturing firms. Costs of subcontracted work are basically the same as direct materials; direct staff costs are the same as direct labour, studio overhead is the same as manufacturing overhead, and completed projects are the same as finished goods. Apart from the difference in terms, the accounting methods used by the company are identical to the methods used by manufacturing companies.

Leeds uses a job-order costing system, applying studio overhead to work in process on the basis of direct staff costs. At the end of January, only one job was still in process. This job (Lexington Gardens Project) had been charged with $4,000 in direct staff costs.

Required:

1. Compute the predetermined overhead rate that was in use during January.

2. Complete the following job cost sheet for the partially completed Lexington Gardens Project:

LEXINGTON GARDENS PROJECTJob Cost SheetAs of January 31

Costs of subcontracted work............................................$?Direct staff costs...................................................................?Studio overhead...................................................................?Total cost to January 31.....................................................$?

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Work in Process Costs of subcontracted work 520,000 | To completed projects 890,000 Direct staff costs 165,000 Studio overhead 234,300