At the beginning of the year, manufacturing overhead for the year was estimated to be $1,200,000. At the end of the year, actual direct labor hours for the year were 40,500 hours, the actual manufacturing overhead for the year was $1,150,000, and the manufacturing overhead for the year was under applied by $50,000. 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. 39,000 direct labor hours. b. 41,000 direct labor hours. c. 40,500 direct labor hours. d. 38,500 direct labor hours.

At the beginning of the year, manufacturing overhead for the year was estimated to be $1,200,000. At the end of the year, actual direct labor hours for the year were 40,500 hours, the actual manufacturing overhead for the year was $1,150,000, and the manufacturing overhead for the year was under applied by $50,000. 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. 39,000 direct labor hours. b. 41,000 direct labor hours. c. 40,500 direct labor hours. d. 38,500 direct labor hours.

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 23Q: If a factory operates at 100% of capacity one month, 90% of capacity the next month, and 105% of...

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