At the beginning of the year, Learer Company's manager estimated total direct labor cost to be $ The manager also
estimated the following overhead costs for the year.
For the year, the company incurred $ of actual overhead costs. It completed and sold five jobs with the following direct labor
costs: Job $; Job $; Job $; Job $; and Job $ In addition, Job is
in process at the end of the year and had been charged $ 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.
Required:
a Determine the predetermined overhead rate for the year.
b Determine the overhead applied to each of the six jobs during the year.
c Determine the over or underapplied overhead at the yearend.
Prepare the entry to close any over or underapplied overhead to Cost of Goods Sold at yearend.
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Req A
Req
Req
Determine the predetermined overhead rate for the year.
