Tech Solutions is a consulting firm that uses a job-order costing system. Its direct materials consist of hardware and s

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Tech Solutions is a consulting firm that uses a job-order
costing system. Its direct materials consist of hardware and
software that it purchases and installs on behalf of its clients.
The firm’s direct labor includes salaries of consultants that work
at the client’s job site, and its overhead consists of costs such
as depreciation, utilities, and insurance related to the office
headquarters as well as the office supplies that are consumed
serving clients. Tech Solutions computes its predetermined overhead
rate annually on the basis of direct labor-hours. At the beginning
of the year, it estimated that 87,500 direct labor-hours would be
required for the period’s estimated level of client service. The
company also estimated $1,006,250 of fixed overhead cost for the
coming period and variable overhead of $0.50 per direct labor-hour.
The firm’s actual overhead cost for the year was $1,025,150 and its
actual total direct labor was 92,400 hours. Required: 1. Compute
the predetermined overhead rate. 2. During the year, Tech Solutions
started and completed the Xavier Company engagement. The following
information was available with respect to this job: Direct
materials $ 52,200 Direct labor cost $ 24,100 Direct labor-hours
worked 350 Compute the total job cost for the Xavier Company
engagement.