Problem 15-4A Overhead allocation and adjustment using a predetermined overhead rate LO P3, P4 At the beginning of the year, Learer Company's manager estimated total direct labor cost assuming 25 persons working an average of 3,000 hours each at an average wage rate of $30 per hour. The manager also estimated the following manufacturing overhead costs for the year Indirect labor Factory supervision Rent on factory building Pactory utilities Tactory insurance expired Depreciation Factory equipment Repairs expense-Factory equipment Factory supplies used Miscellaneous production costs Total estimated overhead costs. $ 339,200 169.000 160,000 108,000 88,000 486.000 80,000 88,800 56.000 $1,575,000 At year-end, records show the company incurred $1,863,000 of actual overhead costs. It completed and sold five jobs with the following direct labor costs: Job 201, $624,000: Job 202. 583,000; Job 203. $318.000: Job 204, $736,000; and Job 205. $334,000. In addition, Job 206 is in process at the end of the year and had been charged $37,000 for direct labor No jobs were in process at the beginning of the year. The company's predetermined overhead rate is based on direct labor cost Check my Required 1-a. Determine the predetermined overead rate for the year. 1-b. Determine the total overhead cost applied to each of the six jobs during the year 1-c. Determine the over- or underapplied overhead at the year-end. 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 the year. Complete this question by entering your answers in the tabs below. Reg 1A Reg 18 Reg 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 the year. View transaction list Journal entry worksheet Check my w 3 1-c. Determine the over- or underapplied overhead at the year-end. 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 the year Complete this question by entering your answers in the tabs below. Reg 1A Reg 18 Reg 10 Reg 2 Determine the predetermined overhead rate for the year. Choose Numerator: Predetermined overhead rate 1 Choose Denominator Predetermined overhead rate Predetermined overhead rate - 1 - e 1 Reg 18 > Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Req 1C Reg 2 Determine the total overhead cost applied to each of the six jobs during the year. Overhead cost applied Job No. Direct Labor 201 $ 624.000 202 583,000 203 318,000 204 736,000 205 334,000 206 37.000 Total $ 2,632.000 Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Req 1C Reg 2 Determine the over. or underapplied overhead at the year-end. Factory Overhead Req1A Reg 13 Regic 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 the year. View transaction list Journal entry worksheet
