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.