Tutorial 4 1. Job Order Costing (Traditional Costing Method) AEU, Incorporated, uses ajob-order costing system and a predetermined overhead rate based on direct labour hours (traditional method). At the beginning of the year, the company estimated manufacturing overhead for the year would be $160,000 and 10,000 direct labor hours would be used. The following information pertains to December of the current year: Job No. 30 Job No. 31 Job No. 32 Totals Work in process, December 1 $20,000 $28,000 $24,000 $72,0000 December production activity: Materials requisitionedlused $4,000 $6,400 $7,600 $18,000 Direct labor costs $1,600 $2,600 $1,800 $ 6,000 Direct labor hours 320 hrs 280 hrs 800 hrs