In December 2016, Learer Company's manager estimated next year's total direct labor cost assuming 30 persons working an 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 $ 334,200 Factory supervision 143,000 Rent on factory building 155,000 Factory utilities 103,000 Factory insurance expired 83,000 Depreciation-Factory equipment 412,000 Repairs expense-Factory equipment 75,000 Factory supplies used 83,800 Miscellaneous production costs 51,000 Total estimated overhead costs $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, $313,000; Job 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. and sold five jobs with the following direct labor costs: Job 201, $619,000; Job 202, $578,000; Job 203. $313,000; Job 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 Req 1C Reg 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. View transaction list Journal entry worksheet Record the entry to allocate any overapplied or underapplied overhead to 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 ad 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 18 Req 1C Reg 2 Determine the predetermined overhead rate for 2017. Predetermined overhead rate I Choose Denominator: Choose Numerator: Predetermine overhead rate Predetermine overhead rate Reg 1A Req 1B > Required 1-a. Determine the predetermined overhead rate for 2017. 1-b. Determine the total overhead cost applied to each of the six jobs 1-c. Determine the over- or underapplied overhead at year-end 2017. 2. Assuming that any over- or underapplied overhead is not material, p any over- or underapplied overhead to Cost of Goods Sold at the end Complete this question by entering your answers in the tabs below. Req 1A Reg 11 Req 1C Req 2 Determine the total overhead cost applied to each of the six jobs during 2017. 203 Job No. Direct Labor Overhead cost applied 201 $ 619,000 202 578,000 313,000 204 731,000 205 329,000 206 Total $ 2,602,000 $ 32,000 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 1-c. Determine the over- or underapplied overhead at year-end 2017. 2. Assuming that any over- or underapplied overhead is not material, prepa any over- or underapplied overhead to Cost of Goods Sold at the end of 20 Complete this question by entering your answers in the tabs below. Req 1A Req 1B Reglic Reg 2 Determine the over- or underapplied overhead at year-end 2017. Factory Overhead Req 1A Reg 1B Req 1C Reg 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. View transaction list 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 Record entry Clear entry View general journal
