Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Tech Solutions is a consulting firm that uses job-order costing. Its direct materials consist of hardware and software it purchases and installs on behalf of

image text in transcribed

image text in transcribed Tech Solutions is a consulting firm that uses job-order costing. Its direct materials consist of hardware and software it purchases and installs on behalf of its clients. The firm's direct labor includes salaries of consultants who 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 consumed serving clients. Tech Solutions computes its predetermined overhead rate annually based on direct labor-hours. At the beginning of the year, it estimated 52,500 direct labor-hours would be required for the period's estimated level of client service. The company also estimated $262,500 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 $283,300 and its actual total direct labor was 57,850 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 for this job: Compute the total job cost for Xavier Company. Complete this question by entering your answers in the tabs below. Compute the predetermined overhead rate. Note: Round your answer to 2 decimal places. Tech Solutions is a consulting firm that uses job-order costing. Its direct materials consist of hardware and software it purchases and installs on behalf of its clients. The firm's direct labor includes salaries of consultants who 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 consumed serving clients. Tech Solutions computes its predetermined overhead rate annually based on direct labor-hours. At the beginning of the year, it estimated 52,500 direct labor-hours would be required for the period's estimated level of client service. The company also estimated $262,500 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 $283,300 and its actual total direct labor was 57,850 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 for this job: Compute the total job cost for Xavier Company. Complete this question by entering your answers in the tabs below. Compute the total job cost for the Xavier Company engagement. Note: Round your intermediate calculations to 2 decimal places

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting Volume 2

Authors: Kin Lo, George Fisher

4th Edition

0135220491, 9780135220498

More Books

Students also viewed these Accounting questions

Question

What is the education level of your target public?

Answered: 1 week ago

Question

What advertising media and promotional tactics will you use?

Answered: 1 week ago