Problem 3 Grace Ventures is a CPA firm that has the following budget for the year: Direct labor (for professional hours charged to clients) $200,000 Overhead Indirect materials 10,000 Indirect labor 250,000 Depreciation - Building 50,000 Depreciation - Furniture 5,000 Utilities 12,000 Insurance 4,800 Property taxes 5,200 Other expenses 3,000 Total $340,000 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 follow: Henderson account Direct materials $800 Direct labor $3,000 Fisher account Direct materials $2,380 Direct labor $12,600 Required:

(1) Compute the Grace Ventures 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 (1).

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