Help Save Exit Submit Chapter 2 Homework Assignment O You s

Help Save & Exit Submit Chapter 2 Homework Assignment O You skipped this question in the previous attempt. 6 Exercise 2-6 Job-Order Costing for a Service Company [LO2-1, LO2-2, LO2-3 1.66 points Tech Solutions is a consulting firm that uses a job-order costing system. Its direct materials consist of hardware and software that it 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 Tech Solutions computes its predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the labor-hour. The firm\'s actual overhead cost for the year was $1,098,900 and its actual total direct labor was 93,350 hours. as well as the office supplies that are consumed serving clients. elBookTech O direct labor-hours would be required for the period\'s estimated level of client service. The 1,080,000 of fixed overhead cost for the coming period and variable overhead of $0.50 per direct Hint 2. During the year, Tech Solutions started and completed the Xavier Company engagement. The following information was available with respect to this job: s 49,200 s 27,900 360 Direct labor cost Compute the total job cost for the Xavier Company engagement.

Solution

The predetermined over head rate is

Fixed overhead cost : 1,080,000

Total labour hours. : 90,000

Fixed overhead rate :1080000/90000 = 12

Variable overhead rate : 0.5

Pre determined overhead rate : 12.5

Direct material	49200
Direct labour	27900
Overhead applied	4500 (360*12.5)
Total	81600