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 $2,503,000. The manager also estimated the following overhead costs

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
At the beginning of the year, Learer Company's manager estimated total direct labor cost to be $2,503,000. The manager also estimated the following overhead costs for the year. Indirect labor Reet on factory building Factory utilities Depreciation-Factory equipment Repairs expense-Factory equipment Indirect materials Total estimated overhead costs $ 559,500 140,380 156,300 480,300 60,300 105.100 $ 1,501,800 For the year, the company incurred $1,520,900 of actual overhead costs. It completed and sold five jobs with the following direct labor costs: Job 201, $604,300, Job 202. $563,300; Job 203, $298,300, Job 204. $716,300; and Job 205, $314,300. In addition, Job 206 is in process at the end of the year and had been charged $17.300 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. 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 Req2 Determine the predetermined overhead rate for the year. Predetermined overhead rate Denominator: Numerator: 1 Predetermined overhead rate Predetermined overhead rate Reg 1A Req 1B > Job Number Direct Labor Overhead applied 201 202 203 204 $ 604,300 563,300 298,300 716,300 314,300 17,300 $ 2,513,800 205 206 Total Determine the over- or underapplied overhead at the year-end. Factory Overhead Actual overhead cost Applied overhead cost Direct labor cost Underapplied overhead Actual overhead cost Applied overhead cost Estimated overhead cost Overapplied overhead Journal entry worksheet 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. General Journal Date December 31 Debit Credit

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: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

6th Edition

9780470128848

More Books

Students also viewed these Accounting questions