Perrin Company designs industrial prototypes for outside companies. Budgeted overhead for the year was $$225,000,$ and budgeted direct labor hours were $15,000.$ The average wage rate for direct labor is expected to be $$30$ 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 $$24,600$ $$33,400$ $$16,700$ $$1,900$

Materials requisitioned $17,10022,00013,20015,300$

Direct labor cost $8,20019,1007,8506,200$

Overhead is assigned as a percentage of direct labor cost. During June, Jobs $39$ and $40$ were completed; Job $39$ was sold at $125$ 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.

Required:

Question Content Area

$1.$ Calculate the overhead rate based on direct labor cost.

fill in the blank $84788704$f$063$ff$1\_1$

$\%$ of direct labor cost

Question Content Area

$2.$ Set up a simple job$-$order cost sheet for all jobs in process during June.

Perrin Company

Job$-$Order Cost Sheets

blank

Job $39$ Job $40$ Job $41$ Job $42$

Balance: June $1$ $fill in the blank b$2$b$5$d$101600$ffd$6\_1$

$fill in the blank b$2$b$5$d$101600$ffd$6\_2$

$fill in the blank b$2$b$5$d$101600$ffd$6\_3$

$fill in the blank b$2$b$5$d$101600$ffd$6\_4$

$-$ Select $-$

$-$ Select $-$

$-$ Select $-$

$-$ Select $-$

$-$ Select $-$

$-$ Select $-$

$-$ Select $-$

$-$ Select $-$

$-$ Select $-$

$-$ Select $-$

$-$ Select $-$

$-$ Select $-$

Total $fill in the blank b$2$b$5$d$101600$ffd$6\_20$

$fill in the blank b$2$b$5$d$101600$ffd$6\_21$

$fill in the blank b$2$b$5$d$101600$ffd$6\_22$

$fill in the blank b$2$b$5$d$101600$ffd$6\_23$

Question Content Area

$3.$ 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 $=$ $fill in the blank $97$b$0$fef$37$fdff$8$b$\_1$

New overhead rate $=$ fill in the blank $97$b$0$fef$37$fdff$8$b$\_2$

$\%$ of direct labor cost

How would the cost of the jobs be affected?