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 $2,505,000. 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 $2,505,000. 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 $ 559,700 140,500 156,500 480,500 60,500 105,300 $ 1,503,000 For the year, the company Incurred $1,521,500 of actual overhead costs. It completed and sold five jobs with the following direct labor costs: Job 201, $604,500; Job 202, $563,500; Job 203, $298,500; Job 204, $716,500; and Job 205, $314,500. In addition, Job 206 is in process at the end of the year and had been charged $17,500 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 18 Req 1C Req 2 Determine the predetermined overhead rate for the year. Numerator: Predetermined overhead rate Denominator: Predetermined overhead rate Predetermined overhead rate Req 18 >

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

Financial Accounting

Authors: W. Steve Albrecht, James D. Stice, Earl K. Stice

10th edition

324645570, 978-0324645576

More Books

Students also viewed these Accounting questions

Question

Solve the differential equation. xyy' = x 2 + 1

Answered: 1 week ago

Question

=+b) Comparing the sweetness of a diet drink (rated from 1 to

Answered: 1 week ago