At the beginning of the year, Learer Company’s manager estimatedtotal direct labor cost assuming 45 persons working an average of2,000 hours each at an average wage rate of $25 per hour. Themanager also estimated the following manufacturing overhead costsfor the year.

Indirect labor	$	325,200
Factory supervision		233,000
Rent on factory building		146,000
Factory utilities		94,000
Factory insurance expired		74,000
Depreciation—Factory equipment		520,000
Repairs expense—Factory equipment		66,000
Factory supplies used		74,800
Miscellaneous production costs		42,000
Total estimated overhead costs	$	1,575,000

At year-end, records show the company incurred $1,820,000 of actualoverhead costs. It completed and sold five jobs with the followingdirect labor costs: Job 201, $610,000; Job 202, $569,000; Job 203,$304,000; Job 204, $722,000; and Job 205, $320,000. In addition,Job 206 is in process at the end of the year and had been charged$23,000 for direct labor. No jobs were in process at the beginningof the year. The company’s predetermined overhead rate is based ondirect labor cost.

Required
1-a. Determine the predetermined overhead rate for theyear.
1-b. Determine the total overhead cost applied toeach of the six jobs during the year.
1-c. Determine the over- or underapplied overheadat the year-end.
2. Assuming that any over- or underappliedoverhead is not material, prepare the adjusting entry to allocateany over- or underapplied overhead to Cost of Goods Sold at the endof the year.