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In December 2016, Learer Company's manager estimated next year's total direct labor cost assuming 40 persons working an average of 2,000 hours each at an

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In December 2016, Learer Company's manager estimated next year's 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 2017. Indirect labor Factory supervision Rent on factory building Factory utilities Factory insurance expired Depreciation-Factory equipment Repairs expense-Factory equipment Pactory supplies used Miscellaneous production costs Total estimated overhead coats $ 332,200 243,000 103,000 101,000 81,000 496,000 73,000 81,800 49,000 $1,560,000 At the end of 2017, records show the company incurred $1,723,000 of actual overhead costs. It completed and sold five jobs with the following direct labor costs: Job 201, $617,000; Job 202, $576,000; Job 203, $311,000; Job 204, $729,000; and Job 205, $327,000. In addition, Job 206 is in process at the end of 2017 and had been charged $30,000 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 Req 1B Req 1C Req 2 Determine the predetermined overhead rate for 2017. Predetermined overhead rate 1 Choose Denominator: Choose Numerator: Predetermine overhead rate Predetermine overhead rate Req 1B > Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Req 1C Req 2 Determine the over- or underapplied overhead at year-end 2017. Factory Overhead NEY AN Assuming that any over- or underapplied overhead is not material, prepare the adjusting entry to allocate any over- or underapplie overhead to Cost of Goods Sold at the end of 2017. View transaction list Journal entry worksheet

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