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At the beginning of the year, Learer Companys manager estimated total direct labor cost to...

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Accounting

At the beginning of the year, Learer Companys manager estimated total direct labor cost to be $2,518,000. The manager also estimated the following overhead costs for the year.
Indirect labor $ 561,000
Rent on factory building 141,800
Factory utilities 157,800
DepreciationFactory equipment 481,800
Repairs expenseFactory equipment 61,800
Indirect materials 106,600
Total estimated overhead costs $ 1,510,800
For the year, the company incurred $1,525,400 of actual overhead costs. It completed and sold five jobs with the following direct labor costs: Job 201, $605,800; Job 202, $564,800; Job 203, $299,800; Job 204, $717,800; and Job 205, $315,800. In addition, Job 206 is in process at the end of the year and had been charged $18,800 for direct labor. No jobs were in process at the beginning of the year. The companys predetermined overhead rate is based on a percent of direct labor cost.
Required:
1-a. Determine the predetermined overhead rate for the year.
1-b. Determine the overhead applied to each of the six jobs during the year.
1-c. Determine the over- or underapplied overhead at the year-end.
2. Prepare the entry to close any over- or underapplied overhead to Cost of Goods Sold at year-end.

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