(Could someone please explain this with formulas if possible, typed out)

In December 2016, Learer Company's manager estimated next year's total direct labor cost assuming 35 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.

Indirect labor

$

335,200



Factory supervision



165,000



Rent on factory building



156,000



Factory utilities



104,000



Factory insurance expired



84,000



Depreciation—Factory equipment



413,000



Repairs expense—Factory equipment



76,000



Factory supplies used



84,800



Miscellaneous production costs



52,000



Total estimated overhead costs

$

1,470,000

At the end of 2017, records show the company incurred $1,843,000 of actual overhead costs. It completed and sold five jobs with the following direct labor costs: Job 201, $620,000; Job 202, $579,000; Job 203, $314,000; Job 204, $732,000; and Job 205, $330,000. In addition, Job 206 is in process at the end of 2017 and had been charged $33,000 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.