At the beginning of the year, Learer Companys manager estimated total direct labor cost to be $ The manager also estimated the following overhead costs for the year.Indirect labor$ Rent on factory buildingFactory utilitiesDepreciationFactory equipmentRepairs expenseFactory equipmentIndirect materialsTotal estimated overhead costs$ For the year, the company incurred $ of actual overhead costs. It completed and sold five jobs with the following direct labor costs: Job $; Job $; Job $; Job $; and Job $ In addition, Job is in process at the end of the year and had been charged $ for direct labor. No jobs were in process at the beginning of the year. The companys predetermined overhead rate is based on a percent of direct labor cost.Required:a Determine the predetermined overhead rate for the yearb Determine the overhead applied to each of the six jobs during the yearc Determine the over or underapplied overhead at the yearend Prepare the entry to close any over or underapplied overhead to Cost of Goods Sold at yearend.

Answer rating: 100% (QA)

ANSWER Lets go through each of the required steps 1a Determine the predetermined overhead rate for t... View the full answer