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supplies that are consumed serving clients. Tech Solutions computes its predetermined overhead rate annually on the basis of direct labor - hours. At the beginning

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 80,000 direct labor-hours would be required for the period's estimated level of client service. The company also estimated $680,000 of fixed overhead cost for the coming period and variable overhead of $0.50 per direct labor-hour. The firm's actual overhead cost for the year was $692,000 and its actual total direct labor was 83,000 hours.
Required:
Compute the predetermined overhead rate.
During the year, Tech Solutions started and completed the Xavier Company engagement. The following information was available with respect to this job:
Direct materials
Direct labor cost
Direct labor-hours worked
$38,000
$21,000
280
Compute the total job cost for the Xavier Company engagement.
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Compute the total job cost for the Xavier Company engagement.
\table[[Direct materials,],[Direct labor,],[Overhead applied,],[Total manufacturing cost,$
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