Question

Number 5 please finish all of them.

5 Problem 02-4A 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 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 the year. 1 points еВook Indirect labor $ 319,200 240,000 140,000 88,000 68,000 Factory supervision Rent on factory building Factory utilities Factory insurance expired Depreciation-Factory equipment Repairs expense-Factory equipment Factory supplies used Miscellaneous production costs Print References 480,000 60,000 68,800 36,000 $1,500,000 Total estimated overhead costs At year-end, records show the company incurred $1,520,000 of actual overhead costs. It completed and sold five jobs with the following direct labor costs: Job 201, $604,000; Job 202, $563,000; Job 203, $298,000; Job 204, $716,000; and Job 205, $314,000. In addition, Job 206 is in process at the end of the year and had been charged $17,000 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, prepar Screenshot ting entry to allocate any over- LO

Answer 1

1-a.

Total estimated direct labor cost = Estimated Number of persons * Estimated direct labor hours per person * Estimated direct labor rate per hour = 50 * 2000 * 25

2500000

Predetermined overhead rate
Choose numerator:	/	Choose denominator	=	Predetermined overhead rate
Total estimated overhead cost	/	Total estimated direct labor cost	=	Predetermined overhead rate
1500000	/	2500000	=	60%

1-b.	Job no.	Direct labor	Overhead cost applied
	201	604000	362400
	202	563000	337800
	203	298000	178800
	204	716000	429600
	205	314000	188400
	206	17000	10200
	Total	2512000	1507200

1-c.
Factory overhead
Actual overhead	1520000	1507200	Overhead applied
Underapplied overhead	12800

2.
No.	Date	General Journal	Debit	Credit
1.	Dec.31	Cost of goods sold	12800
		Factory overhead		12800