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13 Problem 19-4A Overhead allocation and adjustment using a predetermined overhead rate LO P3, P4 2016, Learer Company's manager estimated next year's total direct labor cost assuming 40 persons working an average of 3,000 hours each at an average wage rate of $20 per hour. The manager also estimated the following manufacturing overhead costs for 2017 Indirect labor Rent on factory building Factory insurance expired s316,200 100,000 147,000 95,000 75,000 521,000 67,000 75,800 43,000 $1,440,0oo equipment Factory supplies used At the end of 2017, records show the company incurred $1,568,000 of actual overhead costs. It completed and sold five jobs with the following direct labor costs: Job 201, $611,000; Job 202, $570,000: Job 203, $305,000; Job 204, $723,000; and Job 205, $321,000. In addition, Job 206 is in process at the end of 2017 and had been charged $24,000 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 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 undera 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 overhead at year-end 2017. Complete this question by entering your answers in the tabs below. Rea 1A Rea 1B Rea 1C Rea 2 At the end of 2017, records show the company incurred $1,568,000 of actual overhead costs. It completed and sold five jobs with the following direct labor costs: Job 201. $611,000; Job 202. $570,000; Job 203, $305,000; Job 204, $723,000; and Job 205, $321,00o. In addition, Job 206 is in process at the end of 2017 and had been charged $24,000 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 Print Complete this question by entering your answers in the tabs below. Req 1A Req 18 Req 1C Req 2 Determine the predetermined overhead rate for 2017. ad rate Req 1B > 13 At the end of 2017, records show the company incurred $1,568,000 of actual following direct labor costs: Job 201, $611,000; Job 202, $570,000; Job 203, In addition, Job 206 is in process at the end of 2017 and had been charged $ end of 2016. The company's predetermined overhead rate is based on direct 57 nts 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, prepare overhead to Cost of Goods Sold at the end of 2017. eBook Print Complete this question by entering your answers in the tabs below. Req 1A Req 18 Req 1C Req 2 Determine the total overhead cost applied to each of the six jobs during 2017. Job No. Direct Labor Overhead cost applied 201 202 203 204 205 206 Total $ 611,000 570,000 305,000 723,000 321,000 24,000 2,554,000 Req 1A Req 1C
