Veronica Company allocates overhead costs to jobs on the basis of direct labor-hours. Its estimated average monthly factory costs for 2005 were as follows:

Its estimated average monthly direct labor-hours are 20,000. Among the jobs worked on in November 2005 were two jobs, G and H, for which the following information was collected:

Required:
a. Compute the overhead rate for Veronica Company.
b. Compute the total production costs of jobs G and H.
c. At what amounts would customers be billed if the company's practice was to charge 180 percent of the production cost of each job?

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Average Monthly Costs Direct material cost Direct labor cost Overhead cost 60,000 300,000 180,000 Direct material cost Direct labor cost Direct labor hours Job G $10,000 28,000 2,400 Job H $10,000 32,000 2,800