Answer 1A 1B 1C 2

At the beginning of the year, Learer Company's manager estimated total direct labor cost to be $2,520,000. The manager also estimated the following overhead costs for the year. Indirect labor $ 561, 200 Rent on factory building 142, 000 Factory utilities 158, 000 Depreciation-Factory equipment 482, 000 Repairs expense-Factory equipment 62, 000 Indirect materials 106 , 800 Total estimated overhead costs $ 1, 512,000 For the year, the company incurred $1,526,000 of actual overhead costs. It completed and sold five jobs with the following direct labor costs: Job 201, $606,000; Job 202, $565,000; Job 203, $300,000; Job 204, $718,000; and Job 205, $316,000. In addition, Job 206 is in process at the end of the year and had been charged $19,000 for direct labor. No jobs were in process at the beginning of the year. The company's predetermined overhead rate is based on a percent of direct labor cost. Required 1-a. Determine the predetermined overhead rate for the year. 1-b. Determine the overhead applied to each of the six jobs during the year 1-c. Determine the over- or underapplied overhead at the year-end. 2. Prepare the entry to close any over- or underapplied overhead to Cost of Goods Sold at year-end