Problem $19-5$A Computing and applying overhead to jobs; recording under$-$or overapplied overhead P$3$

P$4$

At the beginning of the year, Learer Company's manager estimated total direct labor cost to be $$2,500,000.$ The manager also estimated the

following overhead costs for the year.

For the year, 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 a percent of direct labor cost.