How would you do 1c and 2 Connect D Free Homework O Account

How would you do 1-c and 2

Connect D Free Homework × O Accounting Hw: e Chegg Study G × Connect G what Chegg Study G x G Assuming that e -1 haha mai × × Secure https://newconnect.m w/connect.html CH 15 Exercises and Problems Help Save & Exit Submit Check my work 5 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 20 points Indirect labor Factory supervision Rent on factory building Factory utilities Factory insurance expired Depreciation-Factory equipment Repairs expense Factory equipnent Factory supplies used 336.29e 276,000 157,890 185,888 85,8e 625,89 77,800 85,8ee 53,800 eBook scellaneous production costs Total estinated overhead costs Print $1,800,eee At the end of 2017, records show the company incurred $1,979,000 of actual overhead costs. It completed and sold five jobs with the following direct labor costs: Job 201, $621,000; Job 202, $580,000: Job 203. $315,000; Job 204, $733.000: and Job 205, $331,000. In addition, Job 206 is in process at the end of 2017 and had been charged $34,000 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 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 View transaction list

Solution

1-a) predetermined overhead rate = estimated overhead/estimated direct labor cost 1,800,000/(40*3000*20) 0.75 75% 1-b) total overhead cost applied to each jobs job no Direct overhead labor applied 201 621,000 465750 202 580,000 435000 203 315,000 236250 204 733,000 549750 205 331,000 248250 206 34,000 25500 total 2,614,000 1960500 1-c)              Factory overhead Actual overhead cost 1,979,000 1960500 Applied overhead cost underapplied overhead 18,500 2) Date        General Journal             Debit Credit 0 31-Dec Cost of goods sold 18,500 Factory overhead 18,500