At the beginning of the year, Learer Company's manager estimated total direct labor cost assuming 40 persons working an average of 2.500 hours each at an average wage rate of $20 per hour. The manager also estimated the following manufacturing overhead costs for the year. 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 $ 320,200 111,000 141,000 89,000 69,000 402,000 61,000 69,500 37,000 $1,300,000 At year-end, records show the company incurred $1,665,000 of actual overhead costs. It completed and sold five jobs with the following direct labor costs: Job 201. $605,000; Job 202, $564,000; Job 203, 5299.000: Job 204,5717,000, and Job 205.5315.000 In addition, Job 206 is in process at the end of the year and had been charged $18.000 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 1-0. Determine the predetermined overhead rate for the year. 13 Next 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 underapped overhead to Cost of Goods Sold at the end of the year Complete this question by entering your answers in the tabs below. Reg 1A Reg 18 Reg 1C Reg 2 Determine the predetermined overhead rate for the year. Predetermined overhead rate Choose Denominator: Estimated direct labor cost Choose Numerator: Estimated overhead costs Predotormined overhead rate Predetermined overhead rate 0 1 Reg 13 > 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 adjusti overhead to Cost of Goods Sold at the end of the year. Complete this question by entering your answers in the tabs below. Req 1A Red 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 $ 605,000 202 564,000 203 299,000 204 717,000 205 315.000 206 18,000 Total $ 2,518,000 $ 0 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 al overhead to Cost of Goods Sold at the end of the year. Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 1C Req 2 Determine the over- or underapplied overhead at the year-end. Factory Overhead View transaction list Journal entry worksheet
