At the beginning of the year, Learer Company's manager estimated total direct labor cost assuming 40 persons working an average of 2,000 hours each at an average wage rate of $30 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 $332,200 243,000 103,000 101,000 81,000 496,000 73,000 $1,800 49,000 $1,560,000 At year-end records show the company incurred 51723,000 of actual overhead costs. It completed and sold five jobs with the following direct labor costs Job 201, 5617000; Job 202 $576,000, Job 203, 6311.000, Job 204,5729.000, and Job 205, $327000, in addition, Job 206 is in process at the end of the year and had been charged $30,000 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-o. 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 under applied overhead is not material prepare the adjusting entiy 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. Required 1-o. 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 Reg 18 Req 1C Reg 2 Determine the predetermined overhead rate for the year, Choose Numerator Predetermined overhead rate Choose Denominator: 1 Predetermined overhead rate Predetermined overhead rate 1 Reg 18 Req 1A Reg 1B Req 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 $ 617,000 202 576,000 203 311,000 204 729,000 205 327,000 206 30,000 Total $ 2,590,000 Req 1A Reg 1B Reato Req 2. Determine the over- or underapplied overhead at the year-end. Factory Overhead 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
