References Hours of service available at capacity I 1-,600 I l;600 The company applies its overhead costs to jobs using the hours of service provided as the allocation base. For example, this year and last year, 40 servicehours were required to maintain the website for a small company called Verde Consulting. All of Platinum's overhead costs are fixed, and the actual overhead cost incurred was exactly as estimated at the beginning of the year in last year and this year. Required: 1. Platinum Web Services computes its predetermined overhead rate at the beginning of each year based on the estimated overhead cost and the estimated hours of service demanded for the year. Using this approach, how much overhead would have been applied to the Verde Consulting job last year? How about this year? 2. The president of Platinum Web Services has heard that some companies in the industry have changed to a system of computing the predetermined overhead rate based on the hours of service available at capacity. He would like to know what effect this method would have on job costs. How much overhead cost would have been applied to the Verde Consulting job last year using this method? How much would have been applied this year? 3. If Platinum computes its predetermined overhead rate based on the hours of service available at capacity as in Requirement 2, how much unused capacity cost would the company have incurred last year? This year? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Platinum Web Services computes its predetermined overhead rate at the beginning of each year based on the estimated overhead cost and the estimated hours of service demanded for the year. Using this approach, how much overhead would have been applied to the Verde Consulting job last year? How about this year? Lastvuar This Year Overhead applied to Verde Consulting Required 2 > References this year. Required: 1. Platinum Web Services computes its predetermined overhead rate at the beginning of each year based on the estimated overhead cost and the estimated hours of service demanded for the year. Using this approach, how much overhead would have been applied to the Verde Consulting job last year? How about this year? 2. The president of Platinum Web Services has heard that some companies in the industry have changed to a system of computing the predetermined overhead rate based on the hours of service available at capacity. He would like to know what effect this method would have on job costs. How much overhead cost would have been applied to the Verde Consultingjob last year using this method? How much would have been applied this year? 3. If Platinum computes its predetermined overhead rate based on the hours of service available at capacity as in Requirement 2, how much unused capacity cost would the company have incurred last year? This year? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 J ....................... The president of Platinum Web Services has heard that some companies in the industry have changed to a system of computing the predetermined overhead rate based on the hours of service available at capacity. He would like to know what effect this method would have on job costs. How much overhead cost would have been applied to the Verde Consulting job last year using this method? How much would have been applied this year? Last Year This Year Overhead applied to Verde Consulting Show lessA Che 2 last year, 40 seivice-jiuis were required LU IIIalliLalli we website IVI a sillall Cullipally called venue CUIISUILIlly. All UI FIauIIIIIIS overhead costs are fixed, and the actual overhead cost incurred was exactly as estimated at the beginning of the year in last year and this year. Required: 2.5 1. Platinum Web Services computes its predetermined overhead rate at the beginning of each year based on the estimated overhead points cost and the estimated hours of service demanded for the year. Using this approach, how much overhead would have been applied to the Verde Consulting job last year? How about this year? 2. The president of Platinum Web Services has heard that some companies in the industry have changed to a system of computing the predetermined overhead rate based on the hours of service available at capacity. He would like to know what effect this method would have on job costs. How much overhead cost would have been applied to the Verde Consulting job last year using this method? eBook How much would have been applied this year? 3. If Platinum computes its predetermined overhead rate based on the hours of service available at capacity as in Requirement 2, how much unused capacity cost would the company have incurred last year? This year? Print Complete this question by entering your answers in the tabs below. References Required 1 Required 2 Required 3 If Platinum computes its predetermined overhead rate based on the hours of service available at capacity as in Requirement 2, how much unused capacity cost would the company have incurred last year? This year? Last Year This Year Cost of unused capacity References Problem 23-3 (Static) Predetermined Overhead Rate and Capacity [LO21, L02-2, LO2-6] Platinum Web Services designs and maintains websites for small business entrepreneurs. Competition has been intensifying in recent years and the company has been losing business to larger web design firms. Summary data concerning the last two years of operations follow: Last Year This Year Estimated hours of service demanded 1,000 800 Estimated overhead cost $ 160,000 $ 160,000 Actual hours of service provided 750 500 Actual overhead cost incurred $ 160,000 $ 160,000 Hours of service available at capacity 1,600 1,600 The company applies its overhead costs to jobs using the hours of service provided as the allocation base. For example, this year and last year, 40 servicehours were required to maintain the website for a small company called Verde Consulting. All of Platinum's overhead costs are fixed, and the actual overhead cost incurred was exactly as estimated at the beginning of the year in last year and this year. Required: 1. Platinum Web Services computes its predetermined overhead rate at the beginning of each year based on the estimated overhead cost and the estimated hours of service demanded for the year. Using this approach, how much overhead would have been applied to the Verde Consulting job last year? How about this year? 2. The president of Platinum Web Services has heard that some companies in the industry have changed to a system of computing the predetermined overhead rate based on the hours of service available at capacity. He would like to know what effect this method would have on job costs. How much overhead cost would have been applied to the Verde Consulting job last year using this method? How much would have been applied this year? 3. If Platinum computes its predetermined overhead rate based on the hours of service available at capacity as in Requirement 2, how much unused capacity cost would the company have incurred last year? This year