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The Meyers CPA firm has the following overhead budget for the year Overhead Indirect materials 300000 Indirect labor 1600000 Depreciation-Build

The Meyers CPA firm has the following overhead budget for the year: Overhead Indirect materials........................$ 300,000 Indirect labor.............................1,600,000 Depreciation-Building..................293,000 Depreciation-Furniture...................25,000 Utilities.....................................285,000 Insurance.....................................34,000 Property taxes................................48,000 Other expenses............................,135,000 Total.....................................$2,720,000 The firm estimates total direct labor cost for the year to be $1,700,000. 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....................$2,500 Feller account Direct labor.....................$8,500 Required 1. Compute the firm s budgeted 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.

Apr 10 2020 Read more Less More

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