Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Tech Solutions is a consulting firm that uses a job - order costing system. Its direct materials consist of hardware and software that it purchases
Tech 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 office 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. At the beginning of the year, it
estimated that direct laborhours would be required for the period's estimated level of client service. The company also
estimated $ of fixed overhead cost for the coming period and variable overhead of $ per direct laborhour. The firm's
actual overhead cost for the year was $ and its actual total direct labor was 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:
Compute the total job cost for the Xavier Company engagement.
Complete this question by entering your answers in the tabs below.
Compute the total job cost for the Xavier Company engagement. Round your intermediate calculations to decimal places.
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 firms direct labor includes salaries of consultants that work at the clients job site, and its overhead consists of costs such as depreciation, utilities, and insurance related to the office 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. At the beginning of the year, it estimated that direct laborhours would be required for the periods estimated level of client service. The company also estimated $ of fixed overhead cost for the coming period and variable overhead of $ per direct laborhour. The firms actual overhead cost for the year was $ and its actual total direct labor was 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 laborhours worked
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