Reference no: EM132537498

GHI Inc. has commenced work on three jobs during its first year of operations. Costs incurred for each of these jobs are as follows:

                                 Job 1          Job 2             Job 3

Direct Materials     $100,000     $150,000    $200,000

Direct Labour         $200,000     $300,000    $220,000

Question 1: Overhead is applied to jobs at a rate of $0.50 per direct labour dollar spent. During the year, Job 1 was completed, while Job 2 was completed and sold. Job 3 is still process at the end of the year. Actual manufacturing overhead costs incurred amounted to $300,000. GHI employees worked a total of 60,000 hours during the year. GHI's direct labour rate per hour was