Ch3 Exercise: Service Job Costing and Overhead Applied Market-Info, Inc. provides market research services to small businesses that can not perform their own in-house market research. The firm uses a job costing system to accumulate operating costs of its two departments: Asia Market Department and USA Market Department. Department Asia Market USA Market Estimated research hours 4,000 5,000 Estimated departmental overhead $120,000 $45,000 Departmental overhead is applied on the basis of research hours spent. Required: Please compute: 1. Predetermined overhead rate. 2. XYZ, Inc. is a client of market-Info, Inc. In the current period, XYZ received services from both departments of Market-Info. The time and costs spent on the XYZ account are presented below: Department Asia Market USA Market Actual research hours 4,200 5,600 Actual overhead $140,500 $46,400 a. Amount of departmental overhead applied to XYZ, Inc. research project. b. Over or (under) applied overhead, specify (under) or over. 3. ABC, Inc. is a client of market-Info, Inc. In the current period, ABC received services from both departments of Market-Info. The time and costs spent on the ABC account are presented below: Asia Market USA Market Actual research hours 45 75 Data retrieval cost $1000 $2000 The service job costs include data retrieval cost, labor cost for research time, and applied departmental overhead cost. The firm's average labor rate is $100 per hour. What is the total job cost charged to the ABC account?