Job Costs Using a Plantwide Overhead Rate Perrin Company designs industrial prototypes for outside companies. Budgeted overhead for the year was $305,000, and budgeted direct labor hours were 22,000. The average wage rate for direct labor is expected to be $35 per hour. During June, Perrin Company worked on four jobs. Data relating to these four jobs follow: Job 39 Job 40 Job 41 Job 42 Beginning balance $26,400 $33,800 $15,000 $200 Materials requisitione 19,200 Direct labor cost 10,300 23,600 20,700 12,800 15,700 7,450 6,600 Overhead is assigned as a percentage of direct labor cost. During June, Jobs 39 and 40 were completed; Job 39 was sold at 115 percent of cost. Job 40 is the only job in Finished Goods Inventory and will remain there until the customer accepts delivery and pays. Jobs 41 and 42 remain unfinished at the end of the month. 1. Calculate the overhead rate based on direct labor cost. % of direct labor cost Feedback Check My Work T Budgeted direct labor cost = average wage rate for direct labor x budgeted direct lab Overhead rate = budgeted overhead costs budgeted direct labor cost. 2. Set up a simple job-order cost sheet for all jobs in process during June. Perrin Company Job-Order Cost Sheets Balance: June 1 Direct materials Direct labor Applied overhead Total Job 39 Job 40 Job 41 Job 42 $ 00000 00000 3. What if the expected direct labor rate at the beginning of the year was $281 instead of $35? 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