Reference no: EM13977386

In December 2010, Gomez Company 2019s manager estimated next year 2019s total direct labor cost assuming 50 persons working an average of 2,020 hours each at an average wage rate of $15 per hour. The manager also estimated the following manufacturing overhead costs for year 2011.

Indirect labor	$	167,950
Factory supervision		127,000
Rent on factory building		74,000
Factory utilities		44,400
Factory insurance expired		34,500
Depreciation % 2014 Factory equipment		240,000
Repairs expense % 2014 Factory equipment		31,900
Factory supplies used		35,900
Miscellaneous production costs		17,000
Total estimated overhead costs	$	772,650

At the end of 2011, records show the company incurred $747,062 of actual overhead costs. It completed and sold five jobs with the following direct labor costs: Job 201, $364,000; Job 202, $331,000; Job 203, $168,000; Job 204, $423,000; and Job 205, $189,000. In addition, Job 206 is in process at the end of 2011 and had been charged $11,200 for direct labor. No jobs were in process at the end of 2010. The company 2019s predetermined overhead rate is based on direct labor cost.

Job No.	Direct labor cost	Predetermined overhead rate	Applied Overhead
201	364000	0.51	185640
202	331000	0.51	168810
203	168000	0.51	85680
204	423000	0.51	215730
205	189000	0.51	96390
206	11200	0.51	5712
Total			757962
Total	$

Required

1a. Determine the predetermined overhead rate for year 2011. (Omit the "%" sign in your response.) Predetermined overhead rate %

1b. Determine the total overhead cost applied to each of the six jobs during year 2011. (Omit the "$" sign in your response.)

1c. Determine the over- or underapplied overhead at year-end 2011. (Input all amounts as positive values.Omit the "$" sign in your response.)

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 year 2011. (Omit the "$" sign in your response.)