In December 2014, Learer Companys manager estimated next years total direct labor cost assuming 45 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.

In December 2014, Learer Company's manager estimated next year's total direct labor cost assuming 45 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 Factory supervision Rent on factory building Factory utilities Factory insurance expired Depreciation-Factory equipment Repairs expense-Factory equipment Factory supplies used Miscellaneous production costs $ 330,200 109,000 151,000 99,000 79,000 384,000 71,000 79,800 47,000 Total estimated overhead costs $1,350,000 At the end of 2015, records show the company incurred $1,574,000 of actual overhead costs. It completed and sold five jobs with the following direct labor costs: Job 201, $615,000; Job 202, $574,000; Job 203 $309,000; Job 204, $727,000; and Job 205, $325,000. In addition, Job 206 is in process at the end of 2015 and had been charged $28,000 for direct labor. No jobs were in process at the end of 2014. The company's predetermined overhead rate is based on direct labor cost. Required 1.a Determine the predetermined overhead rate for year 2015 Predetermined overhead rate Choose Numerator: Choose Denominator: Predetermine Overhead Rate Estimated overhead costs Estimated direct labor cost Predetermine overhead rate 1,350,000 I 0 In December 2014, Learer Company's manager estimated next year's total direct labor cost assuming 45 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 Factory supervision Rent on factory building Factory utilities Factory insurance expired Depreciation-Factory equipment Repairs expense-Factory equipment Factory supplies used Miscellaneous production costs $ 330,200 109,000 151,000 99,000 79,000 384,000 71,000 79,800 47,000 Total estimated overhead costs $1,350,000 At the end of 2015, records show the company incurred $1,574,000 of actual overhead costs. It completed and sold five jobs with the following direct labor costs: Job 201, $615,000; Job 202, $574,000; Job 203 $309,000; Job 204, $727,000; and Job 205, $325,000. In addition, Job 206 is in process at the end of 2015 and had been charged $28,000 for direct labor. No jobs were in process at the end of 2014. The company's predetermined overhead rate is based on direct labor cost. Required 1.a Determine the predetermined overhead rate for year 2015 Predetermined overhead rate Choose Numerator: Choose Denominator: Predetermine Overhead Rate Estimated overhead costs Estimated direct labor cost Predetermine overhead rate 1,350,000 I 0