(Appendix 4A) Overhead Application, Journal Entries, Job Cost Instructions Chart of Accounts Calculations Journal Concluding Questions Instructions At the beginning of the year, Smith Company budgeted overhead of $129,600 as well as 13,500 direct labor hours. During the year, Job K456 was completed with the following information: direct materials cost, $2,750; direct labor cost, $5,355. The average wage for Smith Company employees is $17 per hour. By the end of the year, 18,100 direct labor hours had actually been worked, and Smith incurred the following actual overhead costs for the year: Equipment lease Depreciation on building $ 6,800 19,340 Indirect labor 90,400 Utilities 14,560 41,400 Other overhead Required: 1. Calculate the overhead rate for the year. 2. Calculate the total cost of Job K456. 3. Prepare the Dec. 31 journal entries to record actual overhead and to apply overhead to production for the year. 4. Is overhead overapplied or underapplied? By how much? 5. Assuming that the normal cost of goods sold for the year is $635,600, what is the adjusted cost of goods sold? Predetermined Overhead Rate, Overhead Application At the beginning of the year, Ilberg Company estimated the following costs: Overhead $416,000 Direct labor cost 520,000 Ilberg uses normal costing and applies overhead on the basis of direct labor cost. (Direct labor cost is equal to total direct labor hours worked multiplied by the wage rate.) For the month of December, direct labor cost was $39,900. Required: 1. Calculate the predetermined overhead rate for the year. Enter the percentage answer as a whole number. % of direct labor cost 2. Calculate the overhead applied to production in December