At the beginning of the year, Learer Company's manager estimated total direct labor cost assuming 40 persons working an average of 2,000 hours each at an average wage rate of $25 per hour. The manager also estimated the following manufacturing overhead costs for the year 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 costa Total estimated overhead coats $ 327,200 149.000 148,000 96,000 76,000 515,000 68,000 76,800 44.000 $1,500,000 At year-end, records show the company incurred $1,941,000 of actual overhead costs. It completed and sold five jobs with the following direct labor costs: Job 201, $612,000: Job 202. $571,000: Job 203, $306,000; Job 204. $724,000; and Job 205, $322,000. In addition, Job 206 is in process at the end of the year and had been charged $25,000 for direct labor. No jobs were in process at the beginning of the year. The company's predetermined overhead rate is based on direct labor cost. Required 1-a. Determine the predetermined overhead rate for the year. 1-b. Determine the total overhead cost applied to each of the six jobs during the year. 1-c. Determine the over- or underapplied overhead at the year-end. 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 the year Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 10 Reg 2 Determine the predetermined overhead rate for the year. Predetermined overhead rate Choose Numerator: Choose Denominator: 1 Predetermined overhead rate Predetermined overhead rate 1 Req 18> Complete this question by entering your answers in the tabs below. Req 1A Req 18 Req 1C Reg 2 Determine the total overhead cost applied to each of the six jobs during the year. Job No. Direct Labor Overhand cost applied 201 $ 612,000 202 571,000 203 306,000 204 724,000 205 322,000 25,000 Total $ 2,560,000 206 Complete this question by entering your answers in the tabs below. Req 1A Reg 18 Regic Reg 2 Determine the over- or underapplied overhead at the year-end. Factory Overhead Reg 18 Reg 2 > Reg 1A Reg 18 Req 1c Req 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 the year. View transaction list Journal entry worksheet
