Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Required 1 Required 2 Compute the total job cost for the Xavier Company engagement. Direct materials Direct labor Overhead applied Total manufacturing costTech Solutions is
Required 1 Required 2 Compute the total job cost for the Xavier Company engagement. Direct materials Direct labor Overhead applied Total manufacturing costTech Solutions is a consulting firm that uses a joborder 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 ofce 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 laborhours. Atthe beginning of the year, it estimated that 80.000 direct labor-hours would be required for the period's estimated level of client service. The company also estimated $680,000 ofxed overhead cost for the coming period and variable overhead of $0.50 per direct laborhour. The firm's actual overhead cost for the year was $692,000 and its actual total direct labor was 83,000 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 respectto thisjob: Direct materials 5 33,606 Direct labor cost 5 21,880 Direct laborhours worked 280 Compute the totaljob cost for the Xavier Company engagement. Complete this queslion by entering you r answers in the labs below. Required 1 Required 2 Compute the predetermined overhead late. {Round your answer to 2 decimal places.) per DLH Required 2 )
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