KLM Company listed the following data for 2005:

(a) Required:

Assuming KLM applied overhead based on direct labor hours, calculate the company's predetermined overhead rate for 2005.

(b) Required:

Assuming KLM applied overhead based on machine hours, calculate the company's predetermined overhead rate for 2005.

(c) Required:

If overhead is applied based on direct labor hours, calculate the overapplied/underapplied overhead.

(d) Required:

If overhead is applied based on machine hours, calculate the overapplied/underapplied overhead.

Jones and Jones CPA firm has the following budget for 2004:

The firm uses direct labor as the cost driver to apply overhead to clients. During January, the firm worked for many clients; data for two of them follows:

Henderson account
Direct materials	$400
Direct labor	$3,000
Fisher account
Direct materials	$5,380
Direct labor	$12,600

Required

1. Compute the Jones and Jones' budgeted overhead rate. Explain how this is used.

2. Compute the amount of overhead to be charged to the Henderson and Fisher accounts using the predetermined overhead rate calculated in requirement.

3. Compute the separate job cost for the Henderson and Fisher accounts.