mework a Saved Help Save & Exit Subm Check my work 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 40 persons working an average of 2,000 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 Factory utilities Factory insurance expired Depreciation-Factory equipment Repaprs expense-Pactory equipment Factory supplies used Miscellaneous production costs Total estimated overhead costs 332,200 243,000 103,000 101,000 81,000 496,000 73,000 81,800 49,000 $1,560,000 At year-end, records show the company incurred $1,723,000 of actual overhead costs. It completed and sold five jobs with the following direct labor costs: Job 201, $617,000; Job 202, $576,000; Job 203. $311,000: Job 204, $729,000; and Job 205, $327,000. In addition, Job 206 is in process at the end of the year and had been charged $30,000 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. Required 1-a. Determine the predetermined overhead rate for the year. an natneming the total imohanda Homework Saved Help Save & Exit Submi Check my work At year-end, records show the company incurred $1,723,000 of actual overhead costs. It completed and sold five jobs with the following direct labor costs: Job 201, $617,000: Job 202. $576.000: Job 203, $311,000: Job 204. $729,000; and Job 205, $327,000. In addition, Job 206 is in process at the end of the year and had been charged $30,000 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. Required 1-a. Determine the predetermined overhead 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. Req 1A Reg 1B Req 1C Req 2 Determine the predetermined overhead rate for the year. = Predetermined overhead rate 1 Choose Denominator / Estimated direct labor cost / Choose Numerator: Estimated overhead costs $ 1,560,000 Predetermined overhead rate Predetermined overhead rate Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 1c Req 2 Determine the total overhead cost applied to each of the six jobs during the year. Overhead cost applied Job No. 201 202 203 204 205 Direct Labor $ 617,000 576,000 311,000 729,000 327,000 30,000 $ 2,590,000 206 Total $ ( Req 1A Req 10 > Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 1C Req 2 Determine the over- or underapplied overhead at the year-end. Factory Overhead VIK Saved Help Save & Exit Check Complete this question by entering your answers in the tabs below. Req 1A Reg 1B 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 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 Dec 31 Debit Credit Journal entry worksheet 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 Dec 31 Record entry Clear entry View general journal
