Reference no: EM132693673
Question - The Meyers CPA firm has the following overhead budget for the year:
Overhead
Indirect materials $380,000
Indirect labor 1,720,000
Depreciation Building 309,000
Depreciation Furniture 41,000
Utilities 325,000
Insurance 42,000
Property taxes 56,000
Other expenses 151,000
Total $3,024,000
The firm estimates total direct labor cost for the year to be $1,890,000. 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 $3,300
Feller account - Direct labor $9,300
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.