QS 15-14 Job order costing of services LO A1 Check my work An advertising agency used 83 hours of direct labor in creating advertising for a music festival. Direct labor costs $52 per hour. The agency applies overhead at a rate of $42 per direct labor hour. Prepare journal entries to record the agency's direct labor and the applied overhead costs for this job. View transaction list Journal entry worksheet B Record direct labor. Note: Enter debits before credits Transaction General Journal Debit Credit 1