Chapter 19- Homework 10 Problem 19-4A Overheed allocation and adjustment using a predetermined overhead rate LO P3, P4 In December 2016, Learer Company's manager estimated next year's total direct labor cost assuming 40 persons working an average of 3,000 hours each at an average wage rate of $20 per hour. The manager also estimated the following manufacturing overhead costs for 2017 $ 321,28e 156,888 Rent on factory building 142,888 98,800 Factory insurance expired 7,80e 498,808 Indirect labor Factory supervision Factory utilities Depreciation-Factory equipment Repairs expense-Factory equipment Factory supplies used Miscellaneous production 38,eee costs Total estimated overhead $ costs 62,800 78,800 1,440,800 At the end of 2017, records show the company incurred $1,542.000 of actual overhead ocuse Chapter 19 - Homework 10 Total estinated overhead costs 1,448,086 -At the end of 2017, records show the company incurred $1,542,000 of actual overhead hcosts. It completed and sold five jobs with the following direct labor costs: Job 201, $606,000; Job 202, $565,000; Job 203, $300,000; Job 204, $718,000; and Job 205, $316,000. In addition, Job 206 is in process at the end of 2017 and had been charged $19,000 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 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 odjusting entry to allocate any over- or underapplied overhead to Cost of Goods Sold at the end of 2017 ocuse pter 19- Homework 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 the end of 2017. Complete this question by entering your answers in the tabs below. Req 1AReq 18Req ICReq 2 Determine the predetermined overhead rate for 2017 Red Req 18 direct labor K Prey 10 of 10 Next euse -b. Determine the total overhead cost applied to each of the six jobs du 1-c. Determine the over- or underapplied overhead at year-end 2017 2. Assuming that any over- or underapplied overhead is not material, pre adjusting entry to allocate any over- or underapplied overhead to Cost ot the end of 2017 ook Complete this question by entering your answers in the tabs below rint Req 1AReq 1B Req 1C erences Determine the predetermined overhead rate for 2017 overhead rate Choose Numerator l Choose Ph Current assets Current liabilities Estimated direct labor cost Estimated overhead costs Net sales Req 1B ocus er 19- Homework 1-a. uetermine tne preaeterminea overneaa rate tor zu 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 1AReq 18 Req IC Req 2 the over- or end 201 Req 1B Req2 > adjusting entry to allocate any over- or underapplied over d the end of 2017 Complete this question by entering your answers in the tabs below Req 1A . Req 18 Req 1C Req 2 Determine the over- or underapplied overhead at year-end 2017. nces Show All Items Actual overhead cost Applied overhead cost Direct labor cost Estimated overhead cost Prey 0 hapter 19- Homework Assuming that any over- or underapplied overthead is not material, prepare the adjusting entry to allocate any over- or underapplied overhead to Cost of Goods Sold at the end of 2017 Journal entry worksheet Record the entry to allocate any overapplied or underapplied overhead to Cost of Goods Sold at the end of year 2017 Print Note: Enter debits before credits. References Record entry Clear entry C Req 1C Prey 10 or 10 Ne cuse Journal entry worksheet Skipped Record the entry to allocate any overapplied or underapplied overhead to Cost of Goods Sold at the end of year 2017. eBook Print Note: Enter debits before credits References Dec 31 Cash Cost of goods sold Factory overhead Record e View general journal Req 1C K Prey 10 of 10 Ne 02 a T u se