The company's 2017 payroll data revealed the following actual payroll costs for the year: Job Title President and CEO Vice president and CFO Factory manager Assistant factory manager Machine operator Security guard, factory Forklift operator Corporate secretary Janitor, factory Annual Total Hours Number Wage Rate Salary per Worked per Employed per Hour Employee Employee $223,000 $178,000 $40,900 $32,500 2,250 $20,800 2,000 $36,100 $6 2,150 $14.5 $7.5 The following information was taken from Sheridan's Schedule of Plant Assets. All assets are depreciated using the straight-line method. Plant Asset Factory building Administrative office Factory equipment Purchase Price Salvage Value Useful Life $4,000,000 $150,000 20 Years $650,000 $125,000 30 Years $2,000,000 $20,000 12 Years Other miscellaneous costs for 2017 all paid in cash included: Cost Factory insurance (fully expired) Administrative office utilities Factory utilities Office supplies (fully consumed) Amount $12,500 $5,200 $32,100 $4,700 Additional information about Sheridan's operations in 2017 includes the following: Raw materials purchases for the year amounted to $1,950,000. All materials were purchased on account. The company used $1,860,000 in raw materials during the year. Of that amount, 85% was direct materials and 15% was indirect materials. Sheridan applied overhead to Work in Process Inventory based on direct materials cost. Airplanes costing $3,450,000 to manufacture were completed and transferred out of Work in Process Inventory. Sheridan uses a markup of 80% to price its airplanes. Sales for the year were $6,570,000. All sales are made on account. (Note: This transaction requires two journal entries.) (a) Your answer is correct. What was Sheridan's predetermined overhead rate in 2017? (Round answer to 2 decimal places, e.g. 52.75%.) Predetermined overhead rate 1 73.75l. % of direct materials cost Click if you would like to Show Work for this question: Open Show Work 1. Salaries and Wages Expense 437100 Salaries Payable 437100 (To record salaries for president, vice president, and corpoarte secretary) 2. Manufacturing Overhead 115000 Salaries Payable 115000 (To record salaried factory worker costs) 3. Work in Process Inventory 163125 Manufacturing Overhead 55800 Wages Payable 218925 10. Work in Process Inventory 1165988 Manufacturing Overhead JT 1165988 (To apply overhead to work in process) 11. Finished Goods Inventory 3450000 Work in Process Inventory IT 3450000 (To record transfer of completed airplanes) 12. Accounts Receivable 6570000 Sales Revenue 6570000 (To record sale of airplanes to customers) 13. Cost of Goods Sold 3650000 Finished Goods Inventory IT 3650000 (To record cost of airplanes sold) Click if you would like to Show Work for this question: Open Show Work Raw Materials Bal. = Bal. i 25000011 000 1950000 JL 1860000 Bal. Bal. 340000 34000 Work in Process Inventory Bal. V 000 63125 3450000 (3) Yo v 7(10) v 163125 | (11) 1581000 11659887 1165988 Bal. V 87113 Finished Goods Inventory Bal. Bal. (11) ] Bal. i 307000 Q C 345000 | 13) | 2870000 345 3650000 Bal. V Manufacturing Overhead Tout 1500 | 10) " 11659 5988 v 558001 (5) 357500 ||| 4450001 279000 T(9) 279000 314088 Bal. Cost of Goods Sold (13) T 3650000 T Sales Revenue 6570000 Was manufacturing under- or overapplied in 2017? By how much? (Round answer to 0 decimal places, e.g. 5,275.) Overapplied 314088 Overheads by $1 Click if you would like to Show Work for this question: Open Show Work Make the adjusting entry necessary to close the under- or overapplied overhead to cost of goods sold. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to O decimal places, e.g. 5,275.) Account Titles and Explanation Debit Credit Manufacturing Overhead 314088 | Cost of Goods Sold 314088 Click if you would like to Show Work for this question: Open Show Work (f) If Sheridan chooses instead to prorate under- or overapplied overhead, what are the adjusted Work in Process Inventory, Finished Goods Inventory and Cost of Goods Sold account balances for 2017? (Round % of total to 2 decimal places, e.g. 55.75 and final answers to 0 decimal places, e.g. 5,275.) Adjusted Balance Work In Process Finished Goods Cost of Goods Sold ta Click if you would like to Show Work for this question: Open Show Work Attempts: 0 of 2 used SAVE FOR LATER SUBMIT ANSWER (g) The parts of this question must be completed in order. This part will be available when you complete the part above. (h) The parts of this question must be completed in order. This part will be available when you complete the part above