.... Uses job order costing. At the start of the year, January 1, the company had work-in-process which consisted of the

following jobs and costs:

Direct materials

Direct labor

Applied overhead

Direct materials

Direct labor

Job 1

$ 1,600

1,900

1,710

Job 1

During the first quarter 3 more jobs were started - Job 4, Job 5 and Job 6. The following cost information is available for

costs incurred during the month of January:

Job 2

$ 2,000

1,200

1,080

Job 2

Job 3

$ 850

900

810

Job 3

Job 4 Job 5

1,800

1,735

6,550

4,500

1,000 1,400 4,200 1,800

1,300

800

Job 6

600

860/n1. The company applies overhead based on direct labor cost - compute the

predetermined overhead rate.