Jamestown Heating & Cooling installs and services commercial heating and cooling systems. Jamestown uses job costing to calculate the cost of its jobs. Overhead is allocated to each job based on the number of direct labor hours spent on that job. At the beginning of the current year, Jamestown estimated that its overhead for the coming year would be $ 63,750. It also anticipated using 4,250 direct labor hours for the year. In May, Jamestown started and completed the following two jobs:

Jamestown paid a $ 20- per- hour wage rate to the employees who worked on these two jobs.

Requirements
1. What is Jamestown€™s predetermined overhead rate based on direct labor hours?
2. Calculate the overhead to be allocated based on direct labor hours to each of the two jobs.
3. What is the total cost of Job 101? What is the total cost of Job102?

Job 101 $15,500 175 Job 102 $10,500 74 Direct labor hours used