Midland Industries uses direct labour cost and direct labour hours as its overhead absorption activity base for Job A and Job B respectively. The following data is available.

Estimated Annual Overhead Cost

Expected Annual Direct Labour Cost

Expected Annual Direct Labour Hours

Actual Direct Labour Cost Incurred

Job A

Job B

$20,000

$72,000

Actual Direct Labour Hours incurred

Job A

Job B

1,200 hours

5,200 hours

$75,000

$93,750

25,000 hrs

Required

i) Calculate the OAR for each job respectively

i) Calculate the applies OH for each job respectively

Midland Industries uses direct labour cost and direct labour hours as its overhead absorption activity base for Job A and Job B respectively. The following data is available