Answer:
Tech Solutions
1. The predetermined overhead rate is:
= $6
2. The total job cost for the Xavier Company engagement is:
= $79,470
Explanation:
a) Data and Calculations:
Estimated direct labor-hours for the year = 55,000
Estimated fixed overhead cost = $302,500
Estimated variable overhead cost ($0.50 per DLH) = $27,500
Total overhead costs = $330,000 ($27,500 + $302,500)
Actual overhead cost for the year = $321,300
Actual total direct labor-hours = 58,850
Predetermined overhead rate = $6 ($330,000/55,000)
Xavier Company's Job:
Direct materials $ 50,850
Direct labor cost $ 27,300
Direct labor hours worked 220
Applied overhead = $1,320 ($6 * 220)
Total job cost = $79,470
