Following is information about Allen's Accounting Services:
Professional Professional
Labour Cost Direct Costs Labour Hours
Client 57 $2,000 $800 20
Client 58 $1,000 $200 10
Client 59 $5,000 $600 50
Allen's Accounting Services uses job costing and applies overhead using a normal costing system using professional labour cost as the allocation base. This period's estimated overhead cost is $400,000, estimated professional labour cost is $800,000 and estimated direct labour hours are 8,000. This period's actual overhead cost was $426,400, actual direct labour cost was $820,000, and actual direct labour hours were 8,200.
a)What is the overhead allocation rate?
b)What is the total cost for Client 57?

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The Answer of Following is information about Allen's Accounting Services:
Professional Professional
Labour Cost Direct Costs Labour Hours
Client 57 $2,000 $800 20
Client 58 $1,000 $200 10
Client 59 $5,000 $600 50
Allen's Accounting Services uses job costing and applies overhead using a normal costing system using professional labour cost as the allocation base. This period's estimated overhead cost is $400,000, estimated professional labour cost is $800,000 and estimated direct labour hours are 8,000. This period's actual overhead cost was $426,400, actual direct labour cost was $820,000, and actual direct labour hours were 8,200.
a)What is the overhead allocation rate?
b)What is the total cost for Client 57?

Following Is Information About Allen's Accounting Services