Exercise 2-7 (Static) Job-Order Costing for a Service Company [L02-1, L02-2, L02-3] Tech Solutions is a consulting rm that usesjob-order costing. Its direct materials consist of hardware and software it purchases and installs on behalf of its clients. The firm's direct labor includes salaries of consultants who work at the client'sjob site, and its overhead consists of costs such as depreciation, utilities, and insurance related to the office headquarters as well as the office supplies consumed serving clients. Tech Solutions computes its predetermined overhead rate annually based on direct laborhours. At the beginning of the year, it estimated 80,000 direct laborhours would be required for the period's estimated level of client service. The company also estimated $680,000 of fixed overhead cost for the coming period and variable overhead of $0.50 per direct labor-hour. The firm's actual overhead cost for the year was $692,000 and its actual total direct labor was 83,000 hours. Required: 1. Compute the predetermined overhead rate. 2. During the year, Tech Solutions started and completed the Xavier Company engagement. The following information was available for this job: Direct materials $ 38,000 Direct labor cost $ 21,000 Direct laborhours worked 280 Compute the totaljob cost for Xavier Company. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the predetermined overhead rate. Note: Round your answer to 2 decimal places. Predetermined overhead rate | lper DLH Required 2 > Required: 1. Compute the predetermined overhead rate. 2. During the year, Tech Solutions started and completed the Xavier Company engagement. The following information was available for this job: Direct materials $ 38,000 Direct labor cost $ 21,000 Direct laborhours worked 280 Compute the totaljob cost for Xavier Company. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the total job cost for the Xavier Company engagement. Direct materials Direct labor Overhead applied Total manufacturing cost