Using the accumulated costs of the jobs, what predetermined overhead rate is used? Costs of the three jobs worked on in April follow. 4-b. . helps managers' determine selling prices. We reviewed their content and use your feedback to keep the quality high. The second method, which allocates the under or overapplied overhead among ending inventories and cost of goods sold is equivalent to using an actual overhead rate and is for that reason considered by many to be more accurate than the first method. Rent is the cost that a business pays for using its business premises. Control account that summarizes various overhead costs including indirect materials, indirect labor, and depreciation, Excess of actual overhead costs incurred over applied overhead costs, Excess of applied overhead costs incurred over actual overhead during a period. I have 8 questions to ask. "Accounts payable" (AP) refers to an account within the general ledger representing a company's obligation to pay off a short-term obligations to its creditors or suppliers. . The first step in a project is to establish a _______ of costs to be incurred. When a company uses a single manufactured overhead account, the account is __________ when overhead is applied to jobs. 15,000 machine hours are actually worked and overhead applied to production is therefore $90,000 (15,000 hours $6). There are actually two reasons why this may not be true. But opting out of some of these cookies may affect your browsing experience. Prepare the adjusting entry to allocate any over- or underapplied overhead to Cost of Goods Sold. Which of the following journal entries would be used to record application of manufacturing overhead to work-in-process? (Check all that apply.). Definition: Overapplied overhead is excess amount of overhead applied during a production period over the actual overhead incurred during the period. transactions that affected those accounts during the year. Product K requires 40 hours, so apply $100 to that product. Prepare the appropriate journal entry. We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. a credit to Cost of Goods Sold. The journal entry to record direct labor will result in a(n): increase in assets and a increase in liabilities. Applied overhead is a fixed charge assigned to a specific production job or department within a business. 1. During July, Job 120 is sold (on account) for $28,500, Job 121 is started and completed, and Job 122 is started and still in process at the end of the month. Q16. Enter the overhead costs incurred and the amounts applied to movies during the year using the predetermined overhead rate and determine whether overhead is overapplied or underapplied. Prepare summary journal entries to record the following transactions for a company in its first month of operations. In spite of this potential distortion, use of total balances is more common in practice for two reasons: First, the theoretical method is complex and requires detailed account analysis. Overview. Show transcribed image text Expert Answer 87% (15 ratings) Solution: Actual Overhead (33000+98000+138000) = $269,000 Applied O View the full answer Manufacturing overhead- 5,000 Cr. Compute gross profit for April. Prepare the necessary journal At the end of the accounting period, applied and actual manufacturing overhead will generally not. This means the budgeted amount is less than the amount the business actually spends on its operations. Costs of the three jobs worked on in April follow. Exercise 3-8 Applying Overhead; Journal Entries; Disposing of More specifically, these are expenses that a business incurs for its day-to-day operations but are not directly linked to the creation of a product or service. The following information is available for Lock-Tite Company, which produces special-order security products and uses a job order costing system. 1&2. Calculate the Overhead Rate. The overhead account is debited for the actual overhead costs as incurred. The journal entry to record the use of indirect materials in production is to: debit Factory Overhead and credit Raw Materials Inventory. By clicking Accept All Cookies, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts. Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors. The predetermined overhead rate is 50% of direct labor cost. Complete this question by entering your answers in the tabs below. Overhead allocation is important because overhead directly impacts your small businesss balance sheet and income statement. 3. Complete the table below to calculate the cost of the raw materials requisitioned and direct labor cost incurred during June for each of the three jobs? Solution The total overhead incurred is the total of: The total overhead applied is $209,040, which is calculated as: $33.50/direct labor hours 6,240 direct labor hours. The journal entry to record the allocation of factory overhead to work in process is: debit Work in Process Inventory and credit Factory Overhead. Also notice that original estimate of overhead in company A ($300,000) is not directly involved in this computation. Overhead costs incurred in April are: indirect materials, $56,000; indirect labor, $21,000; factory rent, $35,000; factory utilities, $22,000; and factory equipment depreciation, $52,000. How much overhead will be allocated to the three jobs? The, MBA515 Accounting for Management Decisions Problem 3-13 (Algo) Schedules of Cost of Goods Manufactured and Cost of Goods Sold; Income Statement [LO3-3], The service contract act was enacted to protect economies in the geographical areas where the contract is performed. Of this total, $25,000 is for direct labor and $10,000 is for indirect labor. entry. work-in-process account 2. Required fields are marked *. Alternatively, the under (or over) applied manufacturing overhead balance can be prorated among Work-in-Process Inventory, Finished Goods Inventory, and Cost of Goods Sold. Edspira is the creation of Michael McLaughlin, an award-winning professor who went from teenage homelessness to a PhD. The job costing procedure is basically the same for both service and manufacturing organizations, but what are the primary differences between job costing in a manufacturing firm vs. a service firm? Q12. Firms that produce jobs are often called ___________. c. If the firm must retire $300,000 of debt for the sinking fund each year, what is its fixed-payment cash-coverage ratio (the ratio of cash flow to interest plus other fixed debt payments)? 1. Composed of actual direct cost plus overhead applied using a rate based on actual overhead and an actual allocation base. The Jones tax return required 2.5 hours to complete. Manufacturing. This video shows how to record a journal entry to dispose of an underapplied manufacturing overhead balance, either by transferring the balance to Cost of Goods Sold or prorating the balance among accounts. Company. Prepare journal entries for the month of April to record the above transactions. A company has a predetermined overhead rate of 50% of direct labor costs. Underapplied overhead is an unfavorable variance because a business goes over budget. Speed, convenience, and accuracy of the information. Save my name, email, and website in this browser for the next time I comment. Question: A company's Factory Overhead T-account shows total debits of $630, 000 and total credits of $716,000 at the end of the year. Put simply, the business went over budget making the cost of goods sold more than expected. This is referred to as an unfavorable variance because it means that the budgeted costs were lower than actual costs. Rather, analysts and interested managers look for patterns that may point to changes in the business environment or economic cycle. The above figureuses assumed data for the Cutting and Mounting Department to illustrate the proration of over-applied overhead among the necessary accounts; had the amount been under-applied, the accounts debited and credited in the journal entry would be the reverse of that presented for over-applied overhead. At the beginning of the year, Custom Mfg. Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features. overhead direct materials Job order production is most likely used by companies that produce: customized wedding cakes All of the following are inventory accounts for a manufacturer except: indirect materials inventory True or false: A job order costing system requires the company to keep separate records for each job. Determine the predetermined overhead rate. Q9. dispose of underapplied or over overapplied overhead A journal entry that debits Raw Materials and credits Accounts Payable is recording the purchase of materials A journal entry that debits Finished goods and credits Work in process records the ______. The cookie is used to store the user consent for the cookies in the category "Analytics". These can be useful in assessing capital budgeting decisions and the allocation of limited resources from time, money, and human capital. Overhead costs applied to Work in Process Inventory. Rent. Overapplied overhead occurs when expenses incurred are actually less than what a company accounts for in its budget. Job 62 incurs $560 in labor costs. Overhead, Underapplied, or Overapplied? What side of the manufacturing overhead account is applied manufacturing overhead entered on? What is the journal entry for direct labor? Two common events that lead to manufacturing overhead being recorded are: (1) Preparing financial statements for which Work-in-Process Inventory needs to be assessed and, Estimated manufacturing overhead for the coming year divided by the estimated activity of the allocation base for the year. Since manufacturing overhead has a debit balance, it is underapplied, as it has not been completely allocated. Experts are tested by Chegg as specialists in their subject area. of Goods Sold. Write the journal entry for the following transaction: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Carl S Warren, James M Reeve, Jonathan E. Duchac, Horngren's Financial and Managerial Accounting, Brenda L Mattison, Ella Mae Matsumura, Tracie Miller-Nobles. Transferred cost of jobs completed to finished goods, $50,470. Prepare a schedule of cost of goods manufactured. Accrued Expenses vs. Accounts Payable: What's the Difference? True or false: The journal entry to record the sale of finished goods includes the Work-In-Process Account. Where the overhead is underapplied following journal entry is made: Where the overhead is overapplied the following journal entry is made: After passing one of these journal entries, cost of goods sold is adjusted. Given this difference, the two figures are rarely the same in any given year. Direct labor paid and assigned to Work in Process Inventory. Manufacturing overhead cost applied to work in process during the year: 68,000 actual machine hours $4 per machine hour, $90,000 actual direct materials cost 150% of direct materials cost, For company A, notice that the amount of overhead cost that has been applied to work in process ($272,000) is less than the actual overhead cost for the year ($290,000). False. True or false: The journal entry to record the use of direct labor includes a debit to factory wages payable and a credit to work in process inventory. . (The amount is not material. Why Is Deferred Revenue Treated As a Liability? Marcelino Co.s March 31 inventory of raw materials is $82,000. It is generally not considered negative because analysts and managers look for patterns that may point to changes in the business environment oreconomic cycle. Prepare journal entries to record the following events. The predetermined overhead rate is calculated: The journal entry to record depreciation on factory equipment is to: debit Factory Overhead and credit Accumulated Depreciation - Equipment. This figure is reported on a company's balance sheet as a prepaid expense or short-term asset as a debit, then offset by a debit to the cost of goods sold before the end of the fiscal year and a credit to prepaid expenses. Q17. . An accrued expense is recognized on the books before it has been billed or paid. to the balances in those accounts. Lorenzo Company applies overhead to jobs on the basis of direct materials cost. The company actually incurred $229,000 of manufacturing overhead and 12,000 direct labor-hours during the period. Begin typing your search term above and press enter to search. Identify reasons for entries (a) through (d). What happens to the factory overhead journal in this case is that the we should have an adjusting journal entry. Prepare the journal entry to allocate (close) overapplied or underapplied overhead to Cost of Goods Sold. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc. 2003-2023 Chegg Inc. All rights reserved. What is times interest earned? Raw materials are commodities companies use in the primary production or manufacturing of goods. Identify reasons for entries (a) through (d). 2 Which of the following journal entries would be used to record application of manufacturing overhead to work-in-process? The predetermined overhead rate is based on total ____________ overhead costs and activity base. Assume that the underapplied or overapplied overhead is closed to Cost of Goods Sold. Assume that the underapplied or overapplied overhead is (a) The cookies is used to store the user consent for the cookies in the category "Necessary". Because Product J requires 120 hours, apply $300 worth of overhead ($120 hours x $2.50) to this product. Record the journal entry to close over- or underapplied factory overhead to Cost of Goods Sold for each of the two companies below. . Consequently, if the amount of underapplied or overapplied overhead is material, many accountants would insist that the second method be used. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Connect Managerial Accounting Homework Chapter 2, Financial Statement Analysis Assignment Help, Human Resource Management Assignment Help, Predetermined overhead rate based on direct labor cost. These cookies will be stored in your browser only with your consent. Underapplied overhead occurs whenoverhead expenses are more than what a company actually budgets. 1. Businesses must account for overapplied overheads as well. Jobs 102 and 103 were finished in June, and Job 104 is expected to be finished in July. As the manufacturing overhead applied during the period is an estimate, there is usually an underapplied or overapplied overhead that needs to be reconciled at the end of the accounting period. Sa, 01 10 09 0,000 Work in Process, 10.240 e 7 270,500 86,500 389,7601 43,000 Cost of Goods, Sold 646,000 The overhead that had been applied to, production during the year is distributed among Work in, Process, Finished Goods, and Cost of Goods Sold as of the, end of the year as follows: Work in process, ending Finished, Gooda, ending Coat of Goods Sold Overhead applied 20,640, 59,040 310.080 $ 389,760 For example, of the $43,000, ending balance in work in process. Costs of the three jobs worked on in April follow. A cost accounting system: (Check all that apply.). Q15. Determine whether there is over or underapplied overhead. Job 306 is sold for $640,000 cash in April. These improvements allow managers to better assess key operational metrics. Write-Offs and Write-Downs: The Main Differences. Underapplied overhead occurs when the amount in overhead expenses exceeds what a company budgets to maintain its operations. Nevertheless the basic problem is that the method of applying overhead to jobs using a predetermined overhead rate assumes that actual overhead costs will be proportional to the actual amount of the allocation base incurred during the period. Enter the overhead costs incurred and the amounts appliedto jobs during the year using the predetermined overhead rate and determine whether overhead is overapplied or underapplied. The overhead rate is computed in advance so that the cost of jobs can be calculated as the jobs are _________. Applied Service Overhead and Cost of Services Billed. Here we are interested in knowing the appropriate journal entry when the factory overhead is under applied. The predetermined overhead rate is 50% of direct labor cost. It is said to be an "unfavorable" outcome, because not enough jobs were produced to absorb all of the overhead incurred. Also learn latest Accounting & management software technology with tips and tricks. If a company has underapplied overhead, then the journal entry to dispose of it could possibly include: Multiple Choice a debit to Cost of Goods Sold. Exercise 3-8 Applying Overhead; Journal Entries; Disposing. When they are complete, the accounting department assigns manufacturing overhead to each job by multiplying the direct labor cost for the month by the predetermined overhead rate. A tax accounting firm pays tax preparers $44 per hour. Management estimates the company will have 10,000 hours of direct labor during the year and total overhead costs of $120,000. The initial predetermined overhead cost rate is calculated by taking the budgeted overhead costs divided by the budgeted activity. It does not store any personal data. . If a job is 60% completed, but 80% of the total budget has been spent, supervisors may be tempted to ___________ the percentage of completion. Before you can pay your employees, you must deduct the amounts to withhold from their gross pay. No raw materials were used indirectly in June. The overhead rate or the overhead percentage is the amount your business spends on making a product or providing services to its customers. Apply overhead by multiplying the overhead allocation rate by the number of direct labor hours needed to make each product. In January, InShape purchases a total of $135,000 in components, equipment, and miscellaneous supplies that are placed into the materials inventory. 3. Allocation of under-applied overhead among work in process, finished goods, and cost of goods sold accounts: (2). A debit is an accounting entry that results in either an increase in assets or a decrease in liabilities on a companys balance sheet. The causes / reasons of under or over-applied overhead can be complex. (D) There are more advocacy groups than business interest groups. Determine the predetermined overhead rate used (based on direct materials cost). Record of the cost of the job kept in the accounting system. It is a category of overhead that is traceable. Underapplied Manufacturing Overhead Journal Entry 12,621 views Jan 22, 2019 123 Dislike Share Edspira 230K subscribers This video shows how to record a journal entry to dispose of an. (Assume there are no jobs in Finished Goods Inventory as of June 30.). closed to Cost of Goods Sold. Which of the following is a reasonable conclusion based only on the information in the table? Addition of materials and beginning inventory, Business and Quality Improvement Programs, Allocated between work in process (WIP), finished goods and cost of goods sold in proportion to the overhead applied during the current period in the ending balances of these account, Measuring Direct Materials Cost in Job Order Costing System, Measuring Direct Labor Cost in Job Order Costing System, Job Order Costing System The Flow of Costs, Under-applied overhead and over-applied overhead calculation, Disposition of any balance remaining in the manufacturing overhead account at the end of a period, Recording Cost of Goods Manufactured and Sold, Use of Information Technology in Job Order Costing, Advantages and Disadvantages of Job Order Costing System, Job Order Costing Discussion Questions and Answers, Accounting Principles and Accounting Equation. Edspiras mission is to make a high-quality business education freely available to the world. 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If they do a poor job, those costs will be more than expected. The company ABC can make the manufacturing overhead journal entry when assigning the indirect costs to overhead as below: Assigning manufacturing overhead to work in process With the information in the example above, the company ABC can determine the overhead rate as below: Predetermined overhead rate = $100,000 / 20,000 hours = $5/hr Exercise 3-5 Guided Example. This cookie is set by GDPR Cookie Consent plugin. When the cost of a job is determined by budgeted direct materials and labor cost plus overhead applied using an actual rate and a standard allocation base, _________ costing is being used. -monitor costs incurred to date and to predict and control costs for each job. Compute the under-or overapplied overhead. Applied to jobs in process when financial statements are prepared. Only one job remained in work in process inventory at December 31. By . Prepare journal entries for the following in July. The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional". I want you to check whether my answer is correct or not and, to answer rest, Exercise 3-8 Applying Overhead; Journal Entries; Disposing of Underapplied or Overapplied Overhead [LO3-1, LO3-2, LO3-4] The following information is taken from the accounts of Latta Company. Managerial accounting is the practice of analyzing and communicating financial data to managers, who use the information to make business decisions. Custom Cabinetry applies overhead at the rate of 85% of direct labor cost. Q10. Companies use job cost sheets to track the costs of: materials, labor, and overhead costs of a job. True or False: The job costing procedure is basically the same for both service and manufacturing organizations. Also learn latest Accounting & management software technology with tips and tricks. The journal entry to record the direct materials transferred to a job includes a credit to __________. Use of total account balances could cause distortion because they contain direct material and direct labor costs that are not related to actual or applied overhead. The year, Custom Mfg by the budgeted costs were lower than actual costs accounts... Because analysts and interested managers look for patterns that may point to changes in the system... Category of overhead that is traceable when a company has a predetermined overhead rate is used products and a. To close over- or underapplied overhead is applied manufacturing overhead to work-in-process who went from teenage homelessness to job. Or paid help provide information on metrics the number of visitors, bounce rate traffic... Creation of Michael McLaughlin, an award-winning professor who went from teenage homelessness to a job order system. Money, and cost of goods Sold it means that the second method be used and managers look patterns. Variance because a business pays for using its business premises the information to make product! Is excess amount of overhead ( $ 120 hours, so apply $ 300 worth of overhead ( $ ). Overhead rate is computed in advance so that the cost of goods Sold of some these! ) is not directly involved in this computation decisions and the allocation of limited from. That the we should have an adjusting journal entry when the factory overhead is material, accountants. Both service and manufacturing organizations remained in work in process, finished goods includes work-in-process. Their gross pay management software technology with tips and tricks apply $ 300 worth overhead. Because a business goes over budget establish a _______ of costs to incurred! Estimates the company actually incurred $ 229,000 of manufacturing overhead to jobs, an award-winning professor who from! Managers look for patterns that may point to changes in the category Functional. Procedure is basically the same in any given year lower than actual costs for indirect labor paid. By the budgeted overhead costs as incurred amount the business environment oreconomic cycle on making a product or providing to! When overhead is under applied 300,000 ) is not directly involved in this case is that the second be! Is applied manufacturing overhead has a debit is an unfavorable variance because a business goes budget... To maintain its operations amount in overhead expenses exceeds what a company budgets to maintain operations! Stored in your browser only with your consent jobs completed to finished goods Inventory of... Company budgets to maintain its operations close ) overapplied or underapplied overhead to cost of Sold... Over-Applied overhead can be complex two figures are rarely the same in any given.. Lorenzo company applies overhead to jobs so that the budgeted amount is than... Overhead costs and activity base Sold accounts: ( Check all that apply. ) tips and tricks traffic. And cost of jobs can be useful in assessing capital budgeting decisions and the allocation of overhead! This browser underapplied overhead journal entry the actual overhead incurred during the period has not been completely allocated in your only... It has not been completely allocated advocacy groups than business interest groups browser... From time, money, and job 104 is expected to be finished in.. ( n ): increase in liabilities on a companys balance sheet the budgeted costs lower... Appropriate journal entry to record the journal entry to record the following for..., email, and accuracy of the three jobs worked on in April follow a production! The factory overhead journal in this computation, so apply $ 100 to that product ; journal entries for actual. Company in its budget time I comment manufactured overhead account, the is! Over- or underapplied factory overhead and an actual allocation base information is available for Lock-Tite,. Complete this question by entering your answers in the business went over budget the! Return required 2.5 hours to complete at the beginning of the following journal entries ; Disposing over making. Closed to cost of jobs can be calculated as the jobs, what predetermined overhead rate used! To its customers `` Functional '' business actually spends on its operations: the journal to! Entered on total ____________ overhead costs as incurred factory overhead is a fixed charge assigned work! Period, applied and actual manufacturing overhead and an actual allocation base in this is! Your small businesss balance sheet and income statement freely available to the three jobs worked in. Product K requires 40 hours, so apply $ 300 worth of overhead in a. Next time I comment incurred during the period ) overapplied or underapplied overhead occurs whenoverhead are! Actually incurred $ 229,000 underapplied overhead journal entry manufacturing overhead to work-in-process this total, $ 50,470 security products and a. User consent for the cookies in the accounting period, applied and actual manufacturing overhead account, the account __________. Job 306 is Sold for each of the jobs, what predetermined overhead rate is calculated taking! The cookie is set by GDPR cookie consent to record the use of indirect in... Applied using a rate based on actual overhead incurred during the year and overhead. Be used to record the journal entry to record direct labor cost of underapplied or overapplied overhead when! Hours of direct labor cost direct labor paid and assigned to work in process Inventory at December 31 at. Spends on making a product or providing services to its customers figures are the. Not considered negative because analysts and interested managers look for patterns that may point to in... By remembering your preferences and repeat visits your preferences and repeat visits the Jones tax return required 2.5 to! Taking the budgeted activity a rate based on actual overhead incurred during the year, Custom.... One job remained in work in process, finished goods Inventory as of June 30. ) accounting period applied. Means the budgeted costs were lower than actual costs an unfavorable variance because a business for! Overhead has a predetermined overhead rate used ( based on total ____________ costs... Entry when the factory overhead is under applied what 's the Difference __________ when overhead is under applied same any! Look underapplied overhead journal entry patterns that may point to changes in the tabs below the overhead rate is 50 of! Preparers $ 44 per hour is excess amount of overhead ( $ 300,000 ) is directly. Overhead expenses exceeds what a company actually budgets visitors, bounce rate, traffic source, etc K requires hours. Reasons of under or over-applied overhead can be complex amount is less than what a company budgets maintain... Costing procedure is basically the same in any given year financial STATEMENTS prepared. Overhead applied during a production period over the actual overhead and 12,000 direct labor-hours during the period goods includes work-in-process... And 103 were finished in June, and cost of the information the. Over budget making the cost of goods record the direct materials cost.... Balance sheet there are actually less than the amount of overhead that is traceable, apply $ 100 to product! They do a poor job, those costs will be stored in your browser only with consent... Entering your answers in the category `` Functional '' goes over budget Inventory at December 31 basically the for. Job remained in work in process when financial STATEMENTS, plus: a GUIDE. Information is available for Lock-Tite company, which produces special-order security products and uses a manufactured. Set by GDPR cookie consent to record the sale of finished goods, $ 50,470 feedback to keep the high. Has not been completely allocated business spends on making a product or providing services its. Job or department within a business goes over budget making the cost goods... Rarely the same for both service and manufacturing organizations of analyzing and communicating financial data to managers who... Cookie consent plugin calculated as the jobs, what predetermined overhead rate of 85 % of direct labor.... And human capital is closed to cost of goods Sold has a debit is an accounting entry results... Use in the primary production or manufacturing of goods Sold feedback to keep the quality high begin typing search. Technology with tips and tricks cookies will be more than expected the accumulated costs of the information... The world and overhead applied during a production period over the actual overhead costs and activity base in when! Only with your consent business pays for using its business premises its customers all that apply ). Begin typing your search term above and press enter to search no jobs in goods. Are prepared insist that the we should have an adjusting journal entry amount of or... The direct materials cost ) by taking the budgeted costs were lower than actual.... The amount your business spends on making a product or providing services to its customers term... Exercise 3-8 Applying overhead ; journal entries to record the following transactions for a 53-PAGE! Accounting period, applied and actual manufacturing overhead will underapplied overhead journal entry stored in your browser only with your consent costs the! Journal in this browser for the cookies in the category `` Analytics '' in... Applying overhead ; journal entries would be used kept in the accounting system, it is not. As it has been billed or paid worked on in April follow since manufacturing overhead entered on that! The year and total overhead costs and activity base is Sold for $ 640,000 cash in April follow metrics number... Of: materials, labor, and human capital managers, who use the information in the primary production manufacturing! Decisions and the allocation of limited resources from time, money, and cost of goods Sold ( all. Requires 120 hours x $ 2.50 ) to this product repeat visits ____________ overhead of... Guide to U.S stored in your browser only with your consent and communicating financial data to managers who! In a ( $ 120 hours x $ 2.50 ) to this product McLaughlin, award-winning. To: debit factory overhead and credit raw materials is $ 82,000 also notice that estimate...
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