The Meyers CPA firm has the following overhead budget for the year:

Overhead

Indirect materials. $440,000

Indirect labor 1,810,000

DepreciationBuilding 321,000

DepreciationFurniture 53,000

Utilities 355,000

Insurance 48,000

Property taxes 62,000

Other expenses 163,000

Total. $3,252,000

The firm estimates total direct labor cost for the year to be $2,032,500. The firm uses direct labor cost as the cost driver to apply overhead to clients.

During January, the firm worked for many clients; data for two of them follow:

Gargus account

Direct labor. $3,900

Feller account

Direct labor. $9,900

Required:1. Compute the firm's predetermined overhead rate.

2. Compute the amount of overhead to be charged to the Gargus and Feller accounts using the predetermined overhead rate calculated in requirement 1.

3. Compute total job cost for the Gargus account and the Feller account.