At the beginning of the year, Learer Companys manager estimated total direct labor cost assuming 40 persons working an average of 2,000 hours each at an average wage rate of $40 per hour. The manager also estimated the following manufacturing overhead costs for the year.

Indirect labor	$	324,200
Factory supervision		355,000
Rent on factory building		145,000
Factory utilities		93,000
Factory insurance expired		73,000
DepreciationFactory equipment		750,000
Repairs expenseFactory equipment		65,000
Factory supplies used		73,800
Miscellaneous production costs		41,000
Total estimated overhead costs	$	1,920,000

At year-end, records show the company incurred $1,575,000 of actual overhead costs. It completed and sold five jobs with the following direct labor costs: Job 201, $609,000; Job 202, $568,000; Job 203, $303,000; Job 204, $721,000; and Job 205, $319,000. In addition, Job 206 is in process at the end of the year and had been charged $22,000 for direct labor. No jobs were in process at the beginning of the year. The companys 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.

Complete this question by entering your answers in the tabs below. Req 1A Req 1B Reg 1C Reg 2 Determine the predetermined overhead rate for the year. Choose Numerator: Predetermined overhead rate 1 Choose Denominator: 1 = Predetermined overhead rate Predetermined overhead rate = Reg 1A Reg 1B Reg 10 Reg 2 Determine the total overhead cost applied to each of the six jobs during the year. Overhead cost applied Job No. Direct Labor 201 $ 609,000 202 568,000 203 303,000 204 721,000 205 319,000 206 22,000 Total $ 2,542,000 Req 1A Reg 1B Req 1C Reg 2 Determine the over- or underapplied overhead at the year-end. Factory Overhead Reg 1A Reg 1B Reg 10 Reg 2 Assuming that any over- or underapplied overhead is not material, prepare the adjusting entry to alloc overhead to cost of Goods Sold at the end of the year. View transaction list 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 Debit Credit Date Dec 31 Record entry Clear entry View general journal