1. Calculate the overhead rate based on direct labor cost. % of direct labor cost Feedback Check My Work Budgeted direct labor cost = average wage rate for direct labor x budgeted direct labor hours. Overhead rate = budgeted overhead costs budgeted direct labor cost. 2. Set up a simple job-order cost sheet for all jobs in process during June. Perrin Company Job-Order Cost Sheets Feedback Check My Work Total job cost on job cost sheet = direct materials (DM)+direct Labor (DL)+ Applied Overhead (OH). See Example 5.1. New budgeted direct labor cost = s New overhead rate =% of direct labor cost How would the cost of the jobs be affected