Leeds Architectural Consultants uses a job-order costing system and applies studio overhead to jobs on the basis of direct staff costs. Because Leeds Architectural Consultants is a service firm, the names of the accounts it uses are different from the names used in manufacturing companies. The following costs were recorded in January:

• Cost of subcontracted work (comparable to direct materials) - $230,000
• Direct staff costs (comparable to direct labor) - $75,000
• Studio overhead (comparable to manufacturing overhead cost applied) - $120,000
• Cost of work completed (comparable to cost of goods manufactured) - $390,000

There were no beginning inventories in January. At the end of January, only one job was still in process. This job (Lexington Gardens Project) had been charged with $6,500 in direct staff costs.

Requirement 1:
Compute the predetermined overhead rate that was used during January.

Requirement 2:
Complete the following job cost sheet for the partially completed Lexington Gardens Project. (Hint: Cost of goods manufactured equals beginning work in process inventory plus manufacturing costs incurred less ending work in process inventory.)

Job Cost Sheet, Lexington Gardens Project:

• Costs of subcontracted work - ?
• Direct staff costs - ?
• Studio overhead - ?

Total cost to January 31 - ?