The Meyers CPA firm has the following overhead budget for the year: Overhead Indirect materials.
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The Meyers CPA firm has the following overhead budget for the year:

style="color:rgb(37,37,37);">   Overhead   

Indirect materials. $440,000 

Indirect labor  1,810,000 

Depreciation—Building  321,000 

Depreciation—Furniture  53,000 

Utilities  355,000

Insurance  48,000 

Property taxes  62,000 

Other expenses  163,000 

Total. $3,252,000 

The firm estimates total direct labor cost for the year to be $2,032,500. 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. $3,900 

Feller account   

Direct labor. $9,900 

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.

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