Job Costs Using a Plantwide Overhead Rate Naranjo Company designs industrial prototypes for outside companies. Budgeted overhead for the year was $390,000, and budgeted direct labor hours were 26,000. The average wage rate for direct labor is expected to be $30 per hour. During June, Naranjo Company worked on four jobs. Data relating to these four jobs follow: Job 39 Job 40 Job 41 Job 42 Beginning balance Materials requisitioned Direct labor cost 9,500 19,700 $22,500 18,400 22,600 $11,700 6,350 3,800 $34,500 $15,900 $600 12,900 2. Set up a simple job-order cost sheet for all jobs in process during June. Naranjo Company Job-Order Cost Sheets Job 39 Job 40 Job 41 Job 42 Balance, June 1 Direct materials Direct labor Applied overhead Total Feedback Check My Work See Cornerstone 5.1. 00000 3. What if the expected direct labor rate at the beginning of the year was $24 instead of $30? What would the overhead rate be? If required, round your overhead rate answer to one decimal place. New budgeted direct labor cost $ New overhead rate = % of direct labor cost How would the cost of the jobs be affected? Applied overhead would increase