Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please also explain Tech Solutions is a consulting firm that uses a job-order costing system. Its direct materials consist of hardware and software that it
please also explain
Tech Solutions is a consulting firm that uses a job-order costing system. Its direct materials consist of hardware and software that it purchases and installs on behalf of its clients. The firm's direct labor includes salaries of consultants that work at the client's job site, and its overhead consists of costs such as depreciation, utilities, and insurance related to the office headquarters as well as the office supplies that are consumed serving clients. Tech Solutions computes its predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year, it estimated that 77,500 direct labor-hours would be required for the period's estimated level of client service. The company also estimated $775,000 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 $789,800 and its actual total direct labor was 83,350 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 with respect to this job: Direct material Direct labor coat Direct Labor hours worked $ 52,950 $ 30,500 320 Compute the totaljob cost for the Xavier Company engagement Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the predetermined overhead rate. (Round your answer to 2 decimal places.) Predetermined overhead role per DLH 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 with respect to this job: Direct materials Direct labor cost Direct labor hours worked $ 52,950 $ 30,500 320 Compute the total Job cost for the Xavier Company engagement 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 (Round your intermediate calculations to 2 decimal places.) Direct materials Direct labor Overhead applied Total manufacturing cost $ 0 Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started