Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

At the beginning of the year, Learer Company's manager estimated total direct labor cost to be $2,507,000. The manager also estimated the following overhead

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

At the beginning of the year, Learer Company's manager estimated total direct labor cost to be $2,507,000. 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 $ 559,900 140,700 156,700 480,700 60,700 105,500 $ 1,504,200 For the year, the company Incurred $1,522,100 of actual overhead costs. It completed and sold five jobs with the following direct labor costs: Job 201, $604,700; Job 202, $563,700; Job 203, $298,700; Job 204, $716,700; and Job 205, $314,700. In addition, Job 206 Is In process at the end of the year and had been charged $17,700 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. Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 1C Req 2 Determine the predetermined overhead rate for the year. Numerator: Predetermined overhead rate Denominator: Predetermined overhead rate Predetermined overhead rate Reg 1A Req 1B >

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Human Resource Management

Authors: John Ivancevich, Robert Konopaske

12th edition

9780077496906, 78029120, 77496906, 978-0078029127

More Books

Students also viewed these Accounting questions