Problem 15-4A Overhead 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 30 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 $ 228,200 136,000 149,000 97,000 77,000 201,000 69,000 77,800 45,000 $1,080,000 At the end of 2017, records show the company incurred $1,563,000 of actual overhead costs. It completed and sold five jobs with the following direct labor costs: Job 201, $613,000; Job 202, $572,000; Job 203, $307,000; Job 204, $725,000 and Job 205, $323,000 In addition, Job 206 is in process at the end of 2017 and had been charged $26,000 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 Req 1A Req 1B Req 1C Req 2 Determine the predetermined overhead rate for 2017 redetermined overhead rate Choose Numerator: Choose Denominator: Predetermine overhead rate Predetermine overhead rate 0 Req 1A Req 1B Req 1C Req 2 Determine the total overhead cost applied to each of the six jobs during 2017 Job No. 201 202 203 204 205 206 Total Direct Labor $ 613,000 572,000 307,000 725,000 323,000 26,000 Overhead cost applied $ 2,566,000$ 0 Req 1A Req 1B Req 1C Req 2 Determine the over- or underapplied overhead at year-end 2017. Factory Overhead 0 Journal entry worksheet Record the entry to allocate any overapplied or underapplied overhead to Cost of Goods Sold at the end of year 2017. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31 Record entry Clear entry View general journal