predetermined overhead rate

EXERCISE 2-6 Job Order Costing for a Service Company LOZ-1, LO2-2. LO2-3 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 depre- ciation, 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 80, I'mett labor-hours would be required for the period's estimated level of client service. Thecompany also unbled $680.000 of fixed overhead cost for the com- ine period and variable overhead of 20 50 per direct labor hour. The firm's actual overhead cost for the year was $6192.0010 and its actual motal dinot labor Required: 1. Compute the predetermined overhead rule. During the year. Tech Solutions Harold and Completed the Xavier Company engagement, The following information was avlibbie with usbsu collins job $38.000 Offact labor cost $21.000 180 Compute the total job cost for the Naver Company Chipschen