10 points 1 Skipped eBook Print References Check my work O'Leary Corporation manufactures special-purpose portable structures (huts, mobile offices, and so on) for use at construction sites. It only builds to order (each unit is built to customer specifications). O'Leary uses a normal job costing system. Direct labor at O'Leary is paid $17 per hour, but the employees are not paid if they are not working on jobs. Manufacturing overhead is assigned to jobs by a predetermined rate on the basis of direct labor-hours. The company incurred manufacturing overhead costs during two recent years (adjusted for price-level changes using current prices and wage rates) as follows: Direct labor-hours worked Manufacturing overhead costs incurred Indirect labor Employee benefits Supplies Pover Beat and light Supervision Depreciation Year 1 67,000 2,760,000 Your 2 54,000 $ 2,160,000 1,005,000 810,000 670,000 540,000 627,000 522,000 138,000 130,000 776,250 656,250 1,982,500 Property taxes and insurance Total manufacturing overhead costs 751,250 8,710,000 1,982,500 751,250 $ 7,560,000 At the beginning of Year 3, O'Leary has two jobs, which have not yet been delivered to customers. Job MC-270 was completed on December 27, Year 2. It is scheduled to ship on January 7, Year 3. Job MC-275 is still in progress. For the purpose of computing the predetermined overhead rate, O'Leary uses the previous year's actual overhead rate. Data on direct materials costs and direct labor- hours for these jobs in Year 2 follow Direct materials costs Direct labor-hours Job MC-270 $270,000 2,500 hours Job HC-275 $495,000 3,200 hours During Year 3, O'Leary incurred the following direct materials costs and direct labor-hours for all jobs worked in Year 3, including the completion of Job MC-275: Direct materials costs $ 11,640,000 24-000 10 points 1 Sipped Check my work During Year 3, O'Leary incurred the following direct materials costs and direct labor-hours for all jobs worked in Year 3, including the completion of Job MC-275 Direct materials costs Direct labor-hours Actual manufacturing overhead $ 11,840,000 74,000 $9,120,000 At the end of Year 3, there were four jobs that had not yet shipped. Data on these jobs follow: eflook Direct materials Direct labor-hours Job status Print References Required: MC-389 43,200 MC-390 $67,000 1,740 hours Finished 2,700 hours Finished MI-395 $103,500 6.100 hours In progress MC-399 $ 28,900 1,300 hours In progress a. What were the amounts in the beginning Finished Goods and beginning Work-in-Process accounts for Year 3? b. O'Leary incurred direct materials costs of $57,000 and used an additional 300 hours in Year 3 to complete Job MC-275. What was the final (total) cost charged to Job MC-275? c. What was over- or underapplied overhead for Year 37 d. O'Leary prorates any over- or underapplied overhead to Cost of Goods Sold, Finished Goods Inventory, and Work-In-Process Inventory. Prepare the journal entry to prorate the over- or underapplied overhead. e. A customer has asked O'Leary to bid on a job to be completed in Year 4. O'Leary estimates that the job will require about $92,500 In direct materials and 5,000 direct labor-hours. Because of the economy, O'Leary expects demand for its services to be low in Year 4, and the CEO wants to bid aggressively but does not want to lose any money on the project. O'Leary estimates that there would be virtually no sales or administrative costs associated with this job. What is the minimum amount O'Leary can bid on the job and still not incur a loss? Complete this question by entering your answers in the tabs below. ts Skipped Book Print erences e. A customer has asked Leary to bid on a job to be completed in Year 4. O'Leary estimates that the job will require about $92,5 in direct materials and 5,000 direct labor-hours. Because of the economy, O'Leary expects demand for its services to be low in 4, and the CEO wants to bid aggressively but does not want to lose any money on the project. O'Leary estimates that there wor be virtually no sales or administrative costs associated with this job. What is the minimum amount O'Leary can bid on the job an still not incur a loss? Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required E What were the amounts in the beginning Finished Goods and beginning Work-in-Process accounts for Year 3? Work-in-process inventory Finished goods inventory Required B > d Hiventory. Prepare the journal entry to prorate the over- or underapplied overhead. Finished Goods Inventory, and Work-in-Process e. A customer has asked O'Leary to bid on a job to be completed in Year 4. O'Leary estimates that the job will require about $92,500 in direct materials and 5,000 direct labor-hours. Because of the economy, O'Leary expects demand for its services to be low in Year 4, and the CEO wants to bid aggressively but does not want to lose any money on the project. O'Leary estimates that there would be virtually no sales or administrative costs associated with this job. What is the minimum amount O'Leary can bid on the job and still not incur a loss? Complete this question by entering your answers in the tabs below. es Required A Required B Required C Required D Required B E O'Leary incurred direct materials costs of $57,000 and used an additional 300 hours in Year 3 to complete Job MC-275. What was the final (total) cost charged to Job MC-275? Final (total) cost charged 4, and the CEO wants to bid aggressively but does not want to lose any money on the project. O'Leary estimates that there wow the economy, O'Leary expects demand for its services to be low in be virtually no sales or administrative costs associated with this job. What is the minimum amount O'Leary can bid on the job an still not incur a loss? Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required E What was over- or underapplied overhead for Year 3? overhead 1 Required A Required B Required C Required D Required E oints Skipped Check my work O'Leary prorates any over- or underapplied overhead to Cost of Goods Sold, Finished Goods Inventory, and Work-in-Process Inventory. Prepare the journal entry to prorate the Over- or Underapplied Overhead. Note: If no entry is required for a transaction/event, select "No journal entry required" In the first account field. View transaction list Journal entry worksheet Prist < References Record the entry to prorate any over- or underapplied overhead. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit Record entry Clear entry 1062 View general journal Next > cuawmer has asked O'Leary to bid on a job to be completed in Year 4. O'Leary estimates that the job will require about $92,500 in direct materials and 5,000 direct labor-hours. Because of the economy, O'Leary expects demand for its services to be low in Year 4, and the CEO wants to bid aggressively but does not want to lose any money on the project. O'Leary estimates that there would be virtually no sales or administrative costs associated with this job. What is the minimum amount O'Leary can bid on the job and still not incur a loss? Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required E A customer has asked O'Leary to bid on a job to be completed in Year 4. O'Leary estimates that the job will require about $92,500 in direct materials and 5,000 direct labor-hours. Because of the economy, O'Leary expects demand for its services to be low in Year 4, and the CEO wants to bid aggressively but does not want to lose any money on the project. O'Leary estimates that there would be virtually no sales or administrative costs associated with this job. What is the minimum amount O'Leary can bid on the job and still not incur a loss? Show less A Minimum amount