Shire Companys predetermined overhead rate is based on direct labor cost. Management estimates the company will incur $660,000 of overhead costs and $550,000 of direct labor cost for the period. During March, Shire began and completed Job 56. 1. What is the predetermined overhead rate for this period? 2. Use the information on the following job cost sheet to determine the total cost of Job 56.

A manufacturing company reports the following for the period:

Inventories	Beginning	Ending
Raw materials	$ 18,320	$ 12,300
Work in process	9,700	11,500
Finished goods	12,760	8,930

Activities for the period
Raw materials purchases	$ 8,400
Direct materials used	14,420
Direct labor used	9,500
Overhead applied	11,340
Sales	41,200

1. Prepare a schedule of cost of goods manufactured. 2. Compute gross profit.

Required 1 Required 2 What is the predetermined overhead rate for this period? Overhead Rate Numerator: 1 = 1 1 Denominator: || = Overhead Rate Overhead rate Required 1 Required 2 Use the information on the following job cost sheet to determine the total cost of Job 56. (Round your answers to the nearest dollar amount.) JOB COST SHEET Customer's Name: Keiser Company Job Number: 56 Job Description: 3 customized systems Direct Materials Overhead Date Requisition Number Time-Ticket Number Applied $ March 08 March 11 March 18 M-129 M-142 M-167 Cost $ 4,000 T-306 7,300 T-432 3,300 T-456 Direct Labor Cost 690 1,290 1,330 828 1,548 1,596 Total Cost Required 1 Required 2 Prepare a schedule of cost of goods manufactured. Schedule of Cost of Goods Manufactured Direct labor $ Direct materials used Factory overhead applied Total manufacturing costs Add: Work in process inventory, beginning Total cost of work in process Less: Work in process inventory, ending Cost of goods manufactured 9,500 14,420 11,340 35,260 9,700 44,960 11,500 $ 33,460 Required 1 Required 2 Compute gross profit. Gross profit