At the beginning of the year, manufacturing overhead for the year was estimated to be $279,720. At the end of the year, actual direct labor-hours for the year were 22,700 hours, the actual manufacturing overhead for the year was $270,500, and manufacturing overhead for the year was overapplied by $15,520. If the predetermined overhead rate is based on direct labor-hours, then what must have been the estimated direct labor-hours at the beginning of the year used in the predetermined overhead rate?

At the beginning of the year, manufacturing overhead for the year was estimated to be $279,720. At the end of the year, actual direct labor-hours for the year were 22,700 hours, the actual manufacturing overhead for the year was $270,500, and manufacturing overhead for the year was overapplied by $15,520. If the predetermined overhead rate is based on direct labor-hours, then what must have been the estimated direct labor-hours at the beginning of the year used in the predetermined overhead rate?

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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