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 $832,000 of overhead costs and $520,000 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.

JOB COST SHEET: Job No. 13-56

Direct MaterialsDirect LaborOverheadTotal CostDateRequisition No.AmountTime-Ticket No.AmountCosts AppliedMar. 84-129 $5,000 T-306 $640 Mar. 114-1426,800T-4321, 320Mar. 184-1673, 400 T-456 1,320