At the beginning of the year, Learer Companys manager estimated total direct labor cost to be $2,510,000. The manager also estimated the following overhead costs for the year.

For the year, the company incurred $1,523,000 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, $299,000; Job 204, $717,000; and Job 205, $315,000. 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 companys 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.

\begin{tabular}{lr} Indirect labor & $560,200 \\ Rent on factory building & 141,000 \\ Factory utilities & 157,000 \\ Depreciation-Factory equipment & 481,000 \\ Repairs expense-Factory equipment & 61,000 \\ Indirect materials & 105,800 \\ Total estimated overhead costs & $1,506,000 \\ \hline \end{tabular}