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1 In December 2016, Learer Company's manager estimated next year's total direct labor cost assuming 50 persons working an average of 2,500 hours each at

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1 In December 2016, Learer Company's manager estimated next year's total direct labor cost assuming 50 persons working an average of 2,500 hours each at an average wage rate of $20 per hour. The manager also estimated the following manufacturing overhead costs for 2017 Indirect labor Factory supervision Rent on factory building Factory utilities Factory insurance expired Depreciation-Factory equipment Repairs expense-Factory equipment Factory supplies used Miscellaneous production costs Total estimated overhead costs $ 333,200 128,000 154,000 102,000 82,000 494,000 74,000 82,800 50,000 $1,500,000 At the end of 2017, records show the company incurred $1,600,000 of actual overhead costs. It completed and sold five jobs with the following direct labor costs: Job 201, $618,000, Job 202, $577000: Job 203, $312,000; Job 204, $730,000; and Job 205, $328,000. In addition, Job 206 is in process at the end of 2017 and had been charged $31,000 for direct labor. No jobs were in process at the end of 2016. The company's predetermined overhead rate is based on direct labor cost. Required 1-a. Determine the predetermined overhead rate for 2017 1-b. Determine the total overhead cost applied to each of the six jobs during 2017 1-c. Determine the over- or underapplied overhead at year-end 2017 2. Assuming that any over- or underapplied overhead is not material, prepare the adjusting entry to allocate any over or underapplied overhead to Cost of Goods Sold at the end of 2017, Complete this question by entering your answers in the tabs below. Reg 1A Reg 18 Reg 10 Reg 2 Determine the predetermined overhead rate for 2017 Predetermined overhead rate following direct labor costs: Job 201, $618,00 In addition, Job 206 is in process at the end of 2017 and had been charged $31,000 for direct labor end of 2016. The company's predetermined overhead rate is based on direct labor cost. Required 1-a. Determine the predetermined overhead rate for 2017. 1-b. Determine the total overhead cost applied to each of the six jobs during 2017. 1-c. Determine the over- or underapplied overhead at year-end 2017. 2. Assuming that any over- or underapplied overhead is not material, prepare the adjusting entry to al overhead to Cost of Goods Sold at the end of 2017. Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Req 1C Reg 2 Determine the predetermined overhead rate for 2017, Choose Numerator: Predetermined overhead rate | Choose Denominator: Predetermine overhead rate Predetermine overhead rate Reg 13 > In addition, Job 206 is in process at the end of 2017 and had been charged $31,000 for direct end of 2016. The company's predetermined overhead rate is based on direct labor cost. Required 1-a. Determine the predetermined overhead rate for 2017 1-b. Determine the total overhead cost applied to each of the six jobs during 2017, 1-c. Determine the over- or underapplied overhead at year-end 2017. 2. Assuming that any over- or underapplied overhead is not material, prepare the adjusting ent overhead to Cost of Goods Sold at the end of 2017. Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 10 Reg 2 Determine the total overhead cost applied to each of the six jobs during 2017. Job No. Direct Labor Overhead cost applied 201 $ 618,000 202 577,000 203 312,000 204 730,000 205 328,000 206 31,000 Total $ 2,596,000 Saved Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 1C Req 2 Assuming that any over- or underapplied overhead is not material, prepare the adjusting entry to allo overhead to Cost of Goods Sold at the end of 2017. View transaction list Journal entry worksheet

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