Fundamental Accounting Principles 22th Edition by John Wild ,Ken Shaw,Barbara Chiappetta

Exercise 25

In December 2014, Shire Computer's management establishes the 2015 predetermined overhead rate based on direct labor cost. The information used in setting this rate includes estimates that the company will incur $747,500 of overhead costs and $575,000 of direct labor cost in year 2015. During March 2015, Shire began and completed Job No. 13-56.
1. What is the predetermined overhead rate for 2015
2. Use the information on the following job cost sheet to determine the total cost of the job.