in December 2014, Learer Companys manager estimated next years total direct labor cost assuming 50 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 year 2015.

Indirect labor	$	333,200
Factory supervision		128,000
Rent on factory building		154,000
Factory utilities		102,000
Factory insurance expired		82,000
DepreciationFactory equipment		494,000
Repairs expenseFactory equipment		74,000
Factory supplies used		82,800
Miscellaneous production costs		50,000
Total estimated overhead costs	$	1,500,000

At the end of 2015, records show the company incurred $1,600,000 of actual overhead costs. It completed and sold five jobs with the following direct labor costs: Job 201, $618,000; Job 202, $577,000; Job 203, $312,000; Job 204, $730,000; and Job 205, $328,000. In addition, Job 206 is in process at the end of 2015 and had been charged $31,000 for direct labor. No jobs were in process at the end of 2014. The companys predetermined overhead rate is based on direct labor cost.

1.a	Determine the predetermined overhead rate for year 2015. Determine the total overhead cost applied to each of the six jobs during year 2015. Determine the over- or underapplied overhead at year-end 2015. 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 year 2015.