Example 3 E3-18A Compute a predetermined overhead rate and calculate cost of jobs based on direct labor hours (Learning Objectives 3 & 4) Boston Heating & Cooling installs and services commercial heating and cooling systems. Boston uses job costing to calculate the cost of its jobs. Overhead is allocated to each job based on the number of direct labor hours spent on that job. At the beginning of the current year, Boston estimated that its overhead for the coming year would be $67,200. It also anticipated using 4,200 direct labor hours for the year. In November, Boston started and completed the following two jobs: Direct materials used Direct labor hours used. Job 101 $18,000 180 Job 102 $12,000 74 Boston paid a $24-per-hour wage rate to the employees who worked on these two jobs. Requirements 1. What is Boston's predetermined overhead rate based on direct labor hours? 2. Calculate the overhead to be allocated based on direct labor hours to each of the two jobs. 3. What is the total cost of Job 101? What is the total cost of Job 102