Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

In December 2016, Learer Company's manager estimated next year's total direct labor cost assuming 55 persons working an average of 2.000 hours each at an

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
In December 2016, Learer Company's manager estimated next year's total direct labor cost assuming 55 persons working an average of 2.000 hours each at an average wage rate of $20 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 $ 261,200 156,000 152, eee 1ee, eee se, eee 480, eee 72,eee 80,800 48,000 $1,430,000 At the end of 2017, records show the company incurred $1,711,000 of actual overhead costs. It completed and sold five jobs with the following direct labor costs: Job 201, $616,000Job 202, $575,000: Job 203, $310,000Job 204, $728,000, and Job 205, $326 In addition, Job 206 is in process at the end of 2017 and had been charged $29,000 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 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 10 Req 2 Determine the predetermined overhead rate for 2017. Predetermined overhead rate Choose Denominator: Choose Numerator: Predetermine overhead rate Predetermine overhead rate Reg 1B > 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 Job No. Direct Labor Overhead cost applied 201 $ 616,000 202 575,000 203 310,000 204 728,000 205 326,000 206 29,000 Total $ 2,584,000 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 nces Journal entry worksheet 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 Record entry Clear entry View general journal

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamental Accounting Principles

Authors: John Wild, Ken Shaw, Barbara Chiappett

23rd edition

1259536351, 978-1259536359

More Books

Students also viewed these Accounting questions