aarF1NVIZ Stk Screener Tr adingView i Water& Power a Home l SoCalGas mework In D

Question

aarF1NVIZ Stk Screener Tr adingView i Water& Power a Home l SoCalGas mework In December 2016, Learer Company's manager estimated next year's total direct labor cost assuming 45 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 2017 Indirect labor Factory supervision Rent on factory building Factory utilities Factory insurance expired Depreciation-Factory equipment Repairs expense-Factory equipment Factory supplies used Miscellaneous production costs Total estimated overhead costs $ 337,200 186,800 158,800 186,000 86,800 528,800 78,000 86,80e 54,806 $1,620,6ee At the end of 2017, records show the company incurred $1,594,000 of actual overhead costs. It completed and sold five jobs with the following direct labor costs: Job 201, $622,000; Job 202, $581,000; Job 203, $316,000: Job 204, $734,000; and Job 205, $332,000. In addition, Job 206 is in process at the end of 2017 and had been charged $35,000 for direct labor. No jobs were in process at the end of 2016. The company's predetermined overhead rate is based on direct labor cost. Required 1-a. Determine the predetermined overhead rate for 2017 1-b. Determine the total overhead cost applied to each of the six jobs during 2017 1.c. Determine the over-or underapplied overhead at year-end 2017. 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 2017. Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 1C Req 2

Explanation / Answer

Choose Numerator / Choose Denominator = Predetermined Overhead Rate Total estimated overhead cost / Estimated Direct labor cost = Predetermined Overhead Rate 1620000     / 2700000     = 0.6 of direct labor cost 60% Job no Direct labor cost Overhead cost applied 201 622000 373200 202 581000 348600 203 316000 189600 204 734000 440400 205 332000 199200 206 35000 21000 1572000 Factory overhead Actual overhead 1620000 1572000 Assigned OH 48000 Balance trasferred to cost og goods sold Date Account title and Explanation Debit Credit Cost of goods sold 48000 Factory overhead 48000 (To adjust underapplied OH)

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