O'Leary Corporation manufactures special purpose portable structures (huts, mobile offices, and so on) for use at construction sites. It only builds to order (each unit is built to customer specifications). O'Leary uses a normal job costing system. Direct labor at O'Leary is paid $32 per hour, but the employees are not paid if they are not working on jobs. Manufacturing overhead is assigned to jobs by a predetermined rate on the basis of direct labor hours. The company incurred manufacturing overhead costs during two recent years (adjusted for price-level changes using current prices and wage rates) as follows. Year 1 Direct labor-hours worked 70,000 Manufacturing overhead coats incurred Indirect labor $2,880,000 Employee benefits 1,050,000 Supplies 700,000 Power 657,000 Heat and light 144,000 Supervision 784,950 Depreciation 2.072,500 Property taxes and insurance 811,550 Total manufacturing overhead conta $9,100,000 Year 2 57,000 $2,280,000 855,000 570,000 552,000 144,000 665,250 2.072,500 841,250 57,980,000 At the beginning of year 3, O'Leary has two jobs, which have not yet been delivered to customers. Job MC-270 was completed on December 27 year 2. It is scheduled to ship on January 7 year 3. Job MC 275 is still in progress. For the purpose of computing the predetermined overhead rate, O'Leary uses the previous year's actual overhead rate. Data on direct material costs and direct labor hours for these jobs in year 2 follow. Direct material costs Direct labor-hours Job MC-270 $273,000 2,650 hours Job MC-275 $498,000 3,350 hours During year 3. O'Leary incurred the following direct material costs and direct labor-hours for all jobs worked in year 3, including the completion of Job MC-275. Direct material costa $11,843,000 Direct labor-hours 77,000 Actual manufacturing overhead 9,840,000 At the end of year 3, there were four jobs that had not yet shipped. Data on these jobs follow. Direct materials Direct labor-hours Job status MC-389 $46,200 1,770 hours Pinished MC-390 MC-397 MC-399 $70,000 $106,500 $31,900 2,050 hours 6,250 hours 1,450 hours Finished In progress in progress Required: a. What was the amount in the beginning Finished Goods and beginning Work-in-Process accounts for year 3? b. O'Leary incurred direct materials costs of $60,000 and used an additional 600 hours in year 3 to complete job MC-275. What was the final (total) cost charged to job MC-2757 c. What was over- or underapplied overhead for year 3? d. O'Leary prorates any over-or underapplied overhead to Cost of Goods Sold, Finished Goods Inventory, and Work-in-Process Inventory. Prepare the journal entry to prorate the over- or underapplied overhead. e. A customer has asked O'Leary to bid on a job to be completed in year 4. O'Leary estimates that the job will require about $94,000 in direct materials and 5,150 direct labor hours. Because of the economy, O'Leary expects demand for its services to be low in year 4. and the CEO wants to bid aggressively, but does not want to lose any money on the project. O'Leary estimates that there would be Virtually no sales or administrative costs associated with this job. What is the minimum amount O'Leary can bid on the job and still not incur a loss? Complete this question by entering your answers in the tabs below. Required A Required a Required Required D Required E What was the amount in the beginning Finished Goods and beginning Work-in-Process accounts for year 37 Work in process inventory Finished goods inventory Required: a. What was the amount in the beginning Finished Goods and beginning Work-in-process accounts for year 3? b. O'Leary incurred direct materials costs of $60,000 and used an additional 600 hours in year 3 to complete job MC 275. What was the final (total) cost charged to job MC-275? c. What was over- or underapplied overhead for year 3? d. O'Leary prorates any over- or underapplied overhead to Cost of Goods Sold, Finished Goods Inventory, and Work-in-Process Inventory. Prepare the journal entry to prorate the over- or underapplied overhead. e. A customer has asked O'Leary to bid on a job to be completed in year 4. O'Leary estimates that the job will require about $94,000 in direct materials and 5,150 direct labor-hours. Because of the economy, O'Leary expects demand for its services to be low in year 4 and the CEO wants to bid aggressively, but does not want to lose any money on the project. O'Leary estimates that there would be virtually no sales or administrative costs associated with this job. What is the minimum amount O'Leary can bid on the job and still not Incur a loss? Complete this question by entering your answers in the tabs below. Required A Required B Required C Required Required E O'Leary incurred direct materials costs of $60,000 and used an additional 600 hours in year 3 to complete job MC-275. What was the final (total) cost charged to job MC-2757 Final (total) cost charged Required: a. What was the amount in the beginning Finished Goods and beginning Work-in-Process accounts for year 3? b. O'Leary incurred direct materials costs of $60,000 and used an additional 600 hours in year 3 to complete job MC-275. What was c. What was over-or underapplied overhead for year 3? d. O'Leary prorates any over- or underapplied overhead to Cost of Goods Sold. Finished Goods Inventory, and Work-in-Process Inventory. Prepare the journal entry to prorate the over- or underapplied overhead. e. A customer has asked O'Leary to bid on a job to be completed in year 4. O'Leary estimates that the job will require about $94,000 in direct materials and 5,150 direct labor hours. Because of the economy, O'Leary expects demand for its services to be low in year 4. and the CEO wants to bid aggressively, but does not want to lose any money on the project. O'Leary estimates that there would be Virtually no sales or administrative costs associated with this job. What is the minimum amount O'Leary can bid on the job and still not Incur a loss? Complete this question by entering your answers in the tabs below. Required A Required Required Required bRequired E What was over- or underapplied overhead for year 3? overhead O'Leary prorates any over- or underapplied overhead to Cost of Goods Sold, Finished Goods Inventory, and Work-In-Process Inventory. Prepare the journal entry to prorate the Over-or Underapplied Overhead. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction tint Journal entry worksheet A Record the entry to prorate any over- or underapplied overhead. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal Complete this question by entering your answers in the tabs below. Required A Required 3 Required Required D Required E A customer has asked O'Leary to bid on a job to be completed in year 4. O'Leary estimates that the job will require about $94,000 in direct materials and 5,150 direct labor-hours. Because of the economy, O'Leary expects demand for its services to be low in year 4, and the CEO wants to bid aggressively, but does not want to lose any money on the project. O'Leary estimates that there would be virtually no sales or administrative costs associated with this job. What is the minimum amount O'Leary can bid on the job and still not incur a loss? Show less Minimum amount