At the beginning of the year, Learer Company's manager estimated total direct labor cost to be $2,506,000. The manager also estimated the following overhead costs for the year. Indirect labor. Hent on factory building Factory utilities Oepreciation factory equipment Hepales expense-factory equipment Indirect materials Total estlasted overhead costs For the year, the company incurred $1,521,800 of actual overhead costs. It completed and sold five jobs with the following direct labor costs Job 201, $604,600, Job 202. $563,600, Job 203, $298.600, Job 204, $716.600; and Job 205, $314,600. In addition, Job 206 is in process at the end of the year and had been charged $17,600 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 1-6. Determine the predetermined overhead rate for the year. 1-b. Determine the overhead applied to each of the six jobs during the year. 1-c. Determine the over-or underapplied overhead at the year-end. 2. Prepare the entry to close any over- or underapplied overhead to Cost of Goods Sold at year-end. Complete this question by entering your answers in the tabs below. Reg 1A $ 550,000 140,600 156,600 480,000 60,000 105,400 $1,503,600 Reg 18 201 202 203 204 205 206 Total Reg 1C Reg 2 Determine the overhead applied to each of the six jobu during the year. Jub Number Direct Labor Overhead applied $ 604.600 563,600 290.600 716.600 314,600 17.600 $2.515.600
At the beginning of the year, Learer Company's manager estimated total direct labor cost to be $2,506,000. The manager also estimated the following overhead costs for the year. Indirect labor. Hent on factory building Factory utilities Oepreciation factory equipment Hepales expense-factory equipment Indirect materials Total estlasted overhead costs For the year, the company incurred $1,521,800 of actual overhead costs. It completed and sold five jobs with the following direct labor costs Job 201, $604,600, Job 202. $563,600, Job 203, $298.600, Job 204, $716.600; and Job 205, $314,600. In addition, Job 206 is in process at the end of the year and had been charged $17,600 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 1-6. Determine the predetermined overhead rate for the year. 1-b. Determine the overhead applied to each of the six jobs during the year. 1-c. Determine the over-or underapplied overhead at the year-end. 2. Prepare the entry to close any over- or underapplied overhead to Cost of Goods Sold at year-end. Complete this question by entering your answers in the tabs below. Reg 1A $ 550,000 140,600 156,600 480,000 60,000 105,400 $1,503,600 Reg 18 201 202 203 204 205 206 Total Reg 1C Reg 2 Determine the overhead applied to each of the six jobu during the year. Jub Number Direct Labor Overhead applied $ 604.600 563,600 290.600 716.600 314,600 17.600 $2.515.600
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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Transcribed Image Text:At the beginning of the year, Learer Company's manager estimated total direct labor cost to be $2,506,000. The manager also
estimated the following overhead costs for the year.
Indirect labor
Rent on factory building
factory utilities
Depreciation factory equipment
Repales expense-factory equipment
Indirect materials
Total estlasted overhead costs
$559,800
140,600
156,600
For the year, the company incurred $1,521,800 of actual overhead costs. It completed and sold five jobs with the following direct labor
costs: Job 201, $604,600, Job 202. $563,600, Job 203, $298.600, Job 204, $716,600; and Job 205, $314,600. In addition, Job 206 is
in process at the end of the year and had been charged $17,600 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
1-6. Determine the predetermined overhead rate for the year.
1-b. Determine the overhead applied to each of the six jobs during the year.
1-c. Determine the over- or underapplied overhead at the year-end.
2. Prepare the entry to close any over- or underapplied overhead to Cost of Goods Sold at year-end.
480,600
60,000
105,400
$ 1,503,600
Complete this question by entering your answers in the tabs below.
Reg 1A
Req 18
Determine the overhead applied to each of the six jobs during the year.
Duct Labor
Overhead applied
S 604.600
563,600
298,600
716,600
314,600
17.600
$ 2515 600
201
202
203
204
205
206
Total
Req 1C
Reg 2
Rea 1A
Seved
Reg 1C
>
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