At the beginning of the year, manufacturing overhead for the year was estimated to be $994,125. At the end of the year, actual direct labor hours for the year were 36,370 hours, the actual manufacturing overhead for the year was $940,000, and the manufacturing overhead for the year was overapplied by $60,175. 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: a. 34,182 direct labor hours. b. 36,150 direct labor hours. c. 36,370 direct labor hours. d. 31,994 direct labor hours.
At the beginning of the year, manufacturing overhead for the year was estimated to be $994,125. At the end of the year, actual direct labor hours for the year were 36,370 hours, the actual manufacturing overhead for the year was $940,000, and the manufacturing overhead for the year was overapplied by $60,175. 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: a. 34,182 direct labor hours. b. 36,150 direct labor hours. c. 36,370 direct labor hours. d. 31,994 direct labor hours.
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 1EB: Green Bay Cheese Company estimates its overhead to be $375,000. It expects to have 125,000 direct...
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