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 $720,000 of overhead costs and $600,000 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.

Overhead Rate
Choose Numerator:	/	Choose Denominator:	=	Overhead Rate
	/		=	Overhead rate
	/		=	0

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	$7,000	T-306	$630
Mar. 11	4-142	6,750	T-432	1,280
Mar. 18	4-167	3,450	T-456	1,340