. At the beginning of the year, Corp.'s manufacturing overhead for the year was estimated to be $936,000. At the end of the year, actual direct labor-hours for the year were 36,340 hours, the actual manufacturing overhead for the year was $890,000, and manufacturing overhead for the year was overapplied by $54,840. If the predetermined overhead rate is based on direct labor-hours, then the estimated direct labor-hours at the beginning of the year used in the predetermined overhead rate must have been: (Round your intermediate calculations to 2 decimal places.)
Multiple Choice 32,122 direct labor-hours 34,231 direct labor-hours 36,340 direct labor-hours 36,000 direct labor-hours .
The correct option here is d $36,000
Actual Manufacturing overhead |
$890,000 |
Add : overapplied |
$54,840 |
Total |
$944,840 |
Actual Direct labour hours |
36,340 |
Predetermined overhead rate ( Total / Actual direct labour hours ) |
$26 per labour hour |
We know that
=$ 36,000
Get Answers For Free
Most questions answered within 1 hours.