Calculate the overhead charges for the company\'s three new jobs using Single Ra

Question

Calculate the overhead charges for the company's three new jobs using Single Rate and Dual Rates Methods.

Income Statement 12/31/2008 Revenue S 650,000 100% Cost of work performed Direct Costs S 208,000 Material Direct Labor (including payroll taxes, fringes & union fees) Subcontractor costs Other direct costs 32% 247,000 32,500 13,000 38% 5% 2% Total direct costs $ 500,500 77% Gross profit S 149,500 23% Overhead 115,000 18% Net profit (before taxes) S 34,500 5% JOB A JOB B JOB C Direct Costs Material Direct Labor Subcontractor costs Other direct costs $68,000 $ 20,000 $ 120,000 60,000 8,000 10,000 20,000 2,000 5,000 60,000 Total direct costs $95,000 $ 80,000 $ 198,000

Explanation / Answer

Single over head rate = overhead charges / Total direct cost = 115,000 / 500,500 = 0.2297 per $ of direct cost

Over head Charges By Single Rate

Note ; Ask other part seprately by mentioning the part

Particulars JobA Job B Job C Total Cost 95,000 80,000 198,000 Single rate 0.2297 0.2297 0.2297 Overhead charges 21,821.50 18,376 45,480.60

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