Reference no: EM132224888

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

Overhead
Indirect materials	$480,000
Indirect labor	1,870,000
Depreciation - Building	329,000
Depreciation - Furniture	61,000
Utilities	375,000
Insurance	52,000
Property taxes	66,000
Other expenses	171,000
Total	$3,404,000

The firm estimates total direct labor cost for the year to be $2,127,500. 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	$4,300
Feller account
Direct labor	$10,300

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.