Problem 15-4A (Algo) Computing and applying overhead to jobs; recording under- or overapplied overhead

Problem 15-5A (Algo) Computing and applying overhead to jobs; recording under-or overapplied overhead LO P3, P4 At the beginning of the year, Learer Company's manager estimated total direct labor cost to be $2,515,000. The manager also estimated the following overhead costs for the year Indirect labor Rent on factory building Factory utilities Depreciation-Factory equipment Repairs expense-Factory equipment Indirect materials Total estimated overhead costs $ 560,700 141,500 157,500 481,500 61,500 106,300 $ 1,509,000 For the year, the company incurred $1,524,500 of actual overhead costs. It completed and sold five jobs with the following direct labor costs: Job 201. $605,500: Job 202, $564,500; Job 203, $299,500: Job 204, $717,500; and Job 205, $315,500. In addition, Job 206 is in process at the end of the year and had been charged $18,500 for direct labor. No jobs were in process at the beginning of the year. The company's predetermined overhead rate is based on a percent of direct labor cost. Required 1-a. Determine the predetermined overhead rate for the year. 1-b. Determine the overhead applied to each of the six Jobs during the year. 1-c. Determine the over- or underapplied overhead at the year-end. 2. Prepare the entry to close any over- or underapplied overhead to Cost of Goods Sold at year-end. Required 1-a. Determine the predetermined overhead rate for the year. 1-b. Determine the overhead applied to each of the six Jobs during the year. 1-c. Determine the over- or underapplied overhead at the year-end. 2. Prepare the entry to close any over- or underapplied overhead to Cost of Goods Sold at year-end. Complete this question by entering your answers in the tabs below. Reg 1A Req 1B Req 1C Reg 2 Determine the predetermined overhead rate for the year Predetermined overhead rate Numerator: 1 Denominator: Predetermined overhead rate Predetermined overhead rate 1 1 Regte Req 1B > Determine the overhead applied to each of the six jobs during the year. Job Number Overhead applied 201 Direct Labor $ 605,500 564,500 299,500 202 203 204 205 717,500 315,500 18,500 $ 2,521,000 206 Total Prepare the entry to close any over- or underapplied overhead to Cost of Goods Sold at year-end. View transaction list Journal entry worksheet 1 Record the entry to allocate any overapplied or underapplied overhead to Cost of Goods Sold at the end of the year. Note: Enter debits before credits. Date General Journal Debit Credit December 31 Record entry Clear entry View general journal