Exercise 2-11 Overhead rate; costs assigned to jobs LO P3

In December 2016, Shire Computers 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 $870,000 of overhead costs and $580,000 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.

What is the predetermined overhead rate for 2017?

Overhead Rate
Choose Numerator:	/	Choose Denominator:	=	Overhead Rate
	/		=	Overhead rate
	/		=

Using the information on the following job cost sheet, determine the total cost of the job. (Round your answers to the nearest dollar amount.)

	JOB COST SHEET: Job No. 13-56
	Direct Materials		Direct Labor		Overhead	Total Cost
Date	Requisition No.	Amount	Time-Ticket No.	Amount	Costs Applied
Mar. 8	4-129	$3,000	T-306	$640
Mar. 11	4-142	6,950	T-432	1,290
Mar. 18	4-167	3,350	T-456	1,340