E3-5 Overtime Allocation Arlin Fabrication Company produces tools on a job order basis. During May, two jobs were completed, and the following costs were incurred: Job 401 Job 402 $28,000 $37,000 Direct materials Direct labor: Regular 18,000 23,000 Overtime premium.... 6,000 Other factory costs for the month totaled $16,800. Factory over- head costs are allocated one-third to Job 401 and two-thirds to Job 402. a. Describe two alternative methods for assigning the overtime premium cost to Jobs 401 and 402 and explain how the appro- priate method would be determined. Chapter 3-Accounting fo b. Compute the cost of Jobs 401 and 402 under each of the two methods described in part a