The Data:

\fSheds, Inc. designs and builds sheds and outbuildings for individual customers. The company uses ajob cost system and treats each customers order as a separate job. At the beginning ofJune the company had the following raw material inventory: $600 At the beginning ofJune the company had the following workinprocess inventories: Job 21 $10,000 Job 25 $?,000 During June, the following activities took place: 1. Started jobs 26 and 27. 2. Purchased raw materials in June: $8,000 Requisitioned[or used} the following raw materials to the specic jobs: Job 21 $1,500 Job 25 $2,000 Job 26 $1,250 Job 2? $1,600 3. Incurred June manufacturing payroll: Direct Labor Job 21 $600 Job 25 $1,200 Job 26 $800 Job 2? $1,400 Indirect labor $500 4. Incurred additional manufacturing overhead costs for June: Production equipment rent $700 Manufacturing supplies purchased and used $600 Factory utilities $400 5. Applied manufacturing overhead using a predetermined rate based on predicted annuaI overhead and predicted annual direct material cost as follows: Predicted Annual Overhead $31,500 Predicted Annual Direct Material cost $90,000 6. Completed jobs 21 and 26. 7. Customer for Job 21 picked up completed job and was billed the following: Job 21 15,000 8. The company had the following monthly period costs that they incurred: Sales commissions $400 Administrative salaries $1,100 Required: You need to use cell references to provide answers and calculations. 1. Develop the predetenuined overhead rate. 0. 35