1) Cretin uses a predetermined overhead rate based on direct labor hours. Use the information below to answer the following 5 questions:

• Direct material used to complete Job 101 totaled $10,000.
• Direct labor hours used to complete Job 101 totaled 100 hours.
• Cretin pays a rate of $15 per hour to the employees who worked on the job.

Beginning of year	Total manufacturing overhead	Total Direct labor-hours
Estimated	$150,000	25,000 hours

1. Calculate the predetermined manufacturing overhead rate assuming that the company uses direct labor hours as an allocation base.

2. How much manufacturing overhead would be allocated to Job 101?

3. What is the total cost of Job 101 (include direct materials, direct labor and allocated overhead)?

4. If the sales price of Job 101 is the cost of the job plus a 25% sales market up, what is the sales price?

5. What is the gross profit earned on this job (Hint: Sales price - total cost = gross profit)