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Pearson Architectural Design uses a job-order costing system and applies studio overhead to jobs on the basis of direct staff costs. Because Pearson Architectural Design is a service firm, the names of the accounts it uses are different from the names used in manufacturing companies. The following costs were recorded in January:
There were no beginning inventories in January.
At the end of January, only one job was still in process. This job (the Krimmer Corporation Headquarters project) had been charged with $6,600 in direct staff costs.
Required:
1. Compute the predetermined overhead rate that was used during January.
2. Complete the following job cost sheet for the partially completed Krimmer Corporation Headquarters project. (Hint: Cost of goods manufactured equals beginning work in process inventory plus manufacturing costs incurred less ending work in process inventory.) (Round your intermediate calculations to whole number.)
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