Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Tech Solutions is a consulting fitm that uses a job-order costing system. Its direct materlals consist of hardware and software that it purchases and installs

image text in transcribed
image text in transcribed
Tech Solutions is a consulting fitm that uses a job-order costing system. Its direct materlals 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 labor-hours. At the beginning of the yeat, it estimated that 75,000 direct labor-hours would be required for the period's estimated level of client service. The company also estimated $712.500 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 $731,500 and its actual total direct labor was 80,650 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 avallable 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 predetermined overhead rate. (Round your answer to 2 decimal places.) actual overhead cost for the year was $731,500 and its actual total direct labor was 80.650 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 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

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

Students also viewed these Accounting questions

Question

What are some of the possible scenes from our future?

Answered: 1 week ago