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
