At the beginning of the year, manufacturing overhead for the year was estimated to be $1,033,125. At the end of the year, actual direct labor-hours for the year were 36,390 hours, the actual manufacturing overhead for the year was $972,000, and manufacturing overhead for the year was overapplied by $65,115. 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.)
1. Manufacturing Overhead Applied = Actual Overheads + Overapplied Overhead
= $972,000 + $65,115 = $1,037,115
Manufacturing Overhead Applied = Predetermined Overhead Rate × Direct Labor Hour
Predetermined Overhead Rate = Manufacturing Overhead Applied ÷ Actual Direct Labor Hours
= $1,037,115 ÷ $36,390 = 28.5 per direct Labor Hour
Predetermined Overhead Rate = Estimated Total manufacturing Overhead ÷ Estimated Direct Labour Hours .
Estimated Direct Labour Hours = Estimated Total manufacturing Overhead ÷ Predetermined Overhead Rate
= $1,033,125 ÷ 28.5 Per Direct Labor Hours
= $36,250 Direct Labor Hours
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