In December 2016, Learer Company's manager estimated next year's total direct labor cost assuming 30 persons working on 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 2017 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 $ 334,200 143,000 155,000 103,000 83,080 412,000 75,000 83,800 51,000 $1,440,000 At the end of 2017, records show the company incurred $1,592,000 of actual overhead costs. It completed and sold five jobs with the following direct labor costs: Job 201, $619.000; Job 202. $578,000; Job 203, $313,000Job 204, $731,000; and Job 205, $329,000. In addition, Job 206 is in process at the end of 2017 and had been charged $32,000 for direct labor. No jobs were in process at the end of 2016. The company's predetermined overhead rate is based on direct labor cost. Required 1-a. Determine the predetermined overhead rate for 2017 1-b. Determine the total overhead cost applied to each of the six jobs during 2017, 1-c. Determine the over- or underapplied overhead at year-end 2017 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 2017. Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Reg 1C Reg 2 Determine the predetermined overhead rate for 2017 Bralaalnaalaala addition, Job 206 is in process at the end of 2017 and had been charged $32,000 for direct lobor. No jobs were in process at the end of 2016. The company's predetermined overhead rate is based on direct labor cost. Required 1-a. Determine the predetermined overhead rate for 2017, 1-b. Determine the total overhead cost applied to each of the six jobs during 2017 1-c. Determine the over- or underapplied overhead at year-end 2017 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 2017, Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Req 1C Reg 2 Determine the predetermined overhead rate for 2017, Predetermined overhead rate Choose Denominator: Choose Numerator: Predetermine overhead rate Predetermine overhead rale = Reg 10 > overhea oods sold at the end of Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 10 Req 2 Determine the total overhead cost applied to each of the six jobs during 2017 202 Job No. Direct Labor Overhead cost applied 201 $ 619,000 578,000 203 313,000 204 731,000 205 329,000 206 32,000 Total $ 2,602,000 Next Moyt View transaction list Journal entry worksheet 1 Record the entry to allocate any overapplied or underapplied overhead to Cost of Goods Sold at the end of year 2017, Note: Enter debits before credits. Date General Journal Debit Credit Dec 31 View general Journal Record entry Clear entry Reg 2
