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Go-pack Corporation completed work on three jobs in the most recent period. Only these three jobs were worked on for the period. Information for the three jobs is as follows:
Cost of direct materials per pound $15.00 / lb.Cost of direct labor per hour $24.00 / DL hourGo-pack incurred overhead costs of $304,000 for the period. Go-pack currently uses a volume based system to allocate overhead costs to jobs. Direct labor hours is the allocation base for this volume based allocation.
1. Calculate the overhead allocation rate using the current allocation system.
2. Calculate the total cost of each job: Job 1, Job 2 and Job 3 using the current allocation system.
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