Leeds Architectural Consultants began operations on January 2. The following activity was recorded in the companys Work in Process account for the first month of operations:

Work in Process

Costs of subcontracted work	90,000		To completed projects	550,000
Direct staff costs	200,000
Studio overhead	300,000

Leeds Architectural Consultants is a service firm, so the names of the accounts it uses are different from the names used in manufacturing companies. Costs of Subcontracted Work is comparable to Direct Materials; Direct Staff Costs is the same as Direct Labor; Studio Overhead is the same as Manufacturing Overhead; and Completed Projects is the same as Finished Goods. Apart from the difference in terms, the accounting methods used by the company are identical to the methods used by manufacturing companies.

Leeds Architectural Consultants uses a job-order costing system and applies studio overhead to Work in Process on the basis of direct staff costs. At the end of January, only one job was still in process. This job (Lexington Gardens Project) had been charged with $13,500 in direct staff costs.

Required:

1.

Compute the predetermined overhead rate that was in use during January.

Predetermined overhead rate %

2.

Complete the following job cost sheet for the partially completed Lexington Gardens Project.

Job cost sheet Lexington Garden Project as of January 31

Costs of subcontracted work
Direct staff costs
Studio overhead
Total cost of January 31