At the beginning of the year, Learer Company's manager estimated total direct labor cost to be $2,509,000. The manager also estimated the following overhead costs for the year. Indirect labor Rent on factory building Factory utilities Depreciation-Factory equipment Repairs expense-Factory equipment Indirect materials Total estimated overhead costs $ 560,100 140,900 156,900 480,900 60,900 105,700 $ 1,505,400 For the year, the company incurred $1,522,700 of actual overhead costs. It completed and sold five jobs with the following direct labor costs: Job 201, $604,900; Job 202, $563,900; Job 203, $298,900; Job 204, $716,900; and Job 205, $314,900. In addition, Job 206 is in process at the end of the year and had been charged $17,900 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. Determine the predetermined overhead rate for the year. Numerator: Predetermined overhead rate Denominator: = Predetermined overhead rate = Predetermined overhead rate = Determine the overhead applied to each of the six jobs during the year. Job Number Direct Labor Overhead applied 201 202 203 204 $ 604,900 563,900 298,900 716,900 205 314,900 206 17,900 Total $ 2,517,400 Determine the over- or underapplied overhead at the year-end. Factory Overhead Journal entry worksheet 1 Record the entry to allocate any overapplied or underapplied overhead to Cost of Goods Sold at the end of the year. Note: Enter debits before credits. Date December 31 General Journal Debit Credit