At the beginning of the year, Learer Company's manager estimated total direct labor cost assuming 30 persons working an average of 2,500 hours each at an average wage rate of $30 per hour. The manager also estimated the following manufacturing overhead costs for the year. $323,200 262,000 144,000 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 costs Total estimated overhead costs 92,000 72,000 280,000 64,000 72,800 40,000 $1,350,000 At year-end, records show the company incurred $1.566,000 of actual overhead costs. It completed and sold five jobs with the following direct labor costs: Job 201. $608,000; Job 202. $567.000; Job 203, $302.000: Job 204, $720,000; and Job 205. $318,000. In addition, Job 206 is in process at the end of the year and had been charged $21,000 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. Req 1A Req 1B Req 1C Req 2 Determine the predetermined overhead rate for the year. Predetermined overhead rate Choose Denominator: Choose Numerator: 1 Predetermined overhead rate Predetermined overhead rate / / 11 Req 1A Req 1B Req 1C Req 2 Determine the total overhead cost applied to each of the six jobs during the year, Job No. Direct Labor Overhead cost applied 201 $ 608,000 567.000 202 203 302,000 720,000 204 205 318,000 206 21,000 $ 2,536,000 Total Req 1A Reg 1B Reghe Req 2 Determine the over- or underapplied overhead at the year-end. Factory Overhead Req 1A Req 1B Req 1C Reg 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