Problem 19-4A Overhead allocation and adjustment using a predetermined overhead rate LO P3, P4 At the beginning of the year, Learer Company's manager estimated total direct labor cost assuming 45 persons working an average of 2,500 hours each at an average wage rate of $20 per hour. The manager also estimated the following manufacturing overhead costs for the year 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 $ 330,200 109,000 151,00 99,000 79, cee 384,000 71,00 79,800 47 000 $1,350,000 At year-end, records show the company incurred $1,574,000 of actual overhead costs. It completed and sold five jobs with the following direct labor costs: Job 201. $615,000; Job 202. $574.000: Job 203. $309.000. Job 204, $727,000, and Job 205, $325,000 In addition, Job 206 is in process at the end of the year and had been charged $28,000 for direct labor. No jobs were in process at the beginning of the year. The company's predetermined overhead rate is based on direct labor cost. Required 1-o. Determine the predetermined overhead rate for the year 1-b. Determine the total overhead cost applied to each of the six jobs during the year 1-c. Determine the over or underapplied overhead at the year-end 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 the year Determine the predetermined overhead rate for the year. Predetermined overhead rate Choose Denominator: Choose Numerator Predetermined overhead rate Predetermined overhead rate 11 Determine the total overhead cost applied to each of the six jobs during the year. Job No. Direct Labor Overhead cost applied 201 $ 615,000 202 574,000 309,000 203 204 205 727,000 325,000 28,000 $ 2,578,000 206 Total Determine the over- or underapplied overhead at the year-end. Factory Overhead Actual overhead cost Applied overhead cost Estimated overhead cost Record the entry to allocate any overapplied or underapplied overhead to Cost of Goods Sold at the end of the year. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31 Record entry Clear entry View general journal