An advertising agency used 65 hours of direct labor in creating advertising for a music festival. Direct labor costs $50 per hour. The agency applies overhead at a rate of $40 per direct labor hour. Prepare journal entries to record the agency's direct labor and the applied overhead costs for this job. Journal entry worksheet An advertising agency used 65 hours of direct labor in creating advertising for a music festival. Direct labor costs $50 per hour. The agency applies overhead at a rate of $40 per direct labor hour. Prepare journal entries to record the agencys direct labor and the applied overhead costs for this job. Journal entry worksheet Note: unter aenus berore crecits