Problem 2. AA Overhead allocation and adjustment using a predetermined overhead rate LO P3, PA December 2016 Learer Company's manager estimated next year's total drect labor cost souming 50 persons working an average of 2,000 hours each at an average wage rate of $25 per hour. The manager also estimated the following manufacturing overhead costs for 2017 Indirect labor 319,200 Factory supervision 240,000 Rent on factory building 140.000 Factory utilities 88,000 Factory insurance expired 68,000 Depreciation Factory equipment 480,000 Repair expense-Factory equipment 50,000 Factory Supplies used 68,800 Macellanedu production coate 36.000 Total estimated Ovechead coata 61,500,000 At the end of 2017, records show the company incurred $1520.000 of stusi overhead costs. It completed and sold five fobs with the following direct labor costs: Job 201. $604,000. Job 202 $563.000. Job 203. $299,000: Job 204 $716,000and Job 205. $314,000. In addition, Job 206 is in process at the end of 2017 and has been charges $17.000 for direct labor. No jobs were in process at the end of 2016. The company's predetermined overhesd stes based on direct labor cost Required 1-o. Determine the predetermined overhead rate for 2017 1-b. Determine the total overhead cost applied to each of the job during 2017 1-c. Determine the over- or underapplied overhead styesen 2011 2Assuming that any over- or underappled overness not material.prepare the sung entry to locate any over or underappled overhead to Cost of Goods Sold at the end of 2017 Complete this question by entering your answers in the tabs below. Rus Pag IC Determine the predetermined overhead rate for 2017. Predetermined overhead rasta Choose Numerator Choose Denominator 9 Complete this question by entering your aneurers In the tabs below Req 1A Req 1B Req 1C Reg 2 Determine the total overhead cost applied to each of the six jobs during 2017 201 Job No. Direct Labor Overhead cost applied $ 604,000 202 563,000 298,000 716,000 314,000 206 17,000 Total $ 2,512,000 Req 1A Req 1C > wo Homework end of 2016. The company's predetermined overhead rate is based on direct labor cost. Required ha. Determine the predetermined overhead rate for 2017. Hb. Determine the total overhead cost applied to each of the six jobs during 2017 k. 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 Determine the over- or underapplied overhead at year-end 2017. Factory Overhead 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. General Journal Debit Credit Date Dec 31 Record entry Clear entry View general journal
