At the beginning of the year, manufacturing overhead for the year was estimated to be $283,400. At the end of the year, actual direct labor-hours for the year were 22,600 hours, the actual manufacturing overhead for the year was $266,400, and manufacturing overhead for the year was overapplied by $27,400. 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.) (A) 21,400 direct labor-hours (B) 20,300 direct labor-hours (C) 21,800 direct labor-hours (D) 22,600 direct labor-hours

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 8PB: Queen Bees Honey, Inc., estimated its annual overhead to be $110,000 and based its predetermined...
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At the beginning of the year, manufacturing overhead for the year was
estimated to be $283,400. At the end of the year, actual direct labor-hours for
the year were 22,600 hours, the actual manufacturing overhead for the year was
$266,400, and manufacturing overhead for the year was overapplied by $27,400.
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.)
(A) 21,400 direct labor-hours
(B) 20,300 direct labor-hours
(C) 21,800 direct labor-hours
(D) 22,600 direct labor-hours
Transcribed Image Text:At the beginning of the year, manufacturing overhead for the year was estimated to be $283,400. At the end of the year, actual direct labor-hours for the year were 22,600 hours, the actual manufacturing overhead for the year was $266,400, and manufacturing overhead for the year was overapplied by $27,400. 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.) (A) 21,400 direct labor-hours (B) 20,300 direct labor-hours (C) 21,800 direct labor-hours (D) 22,600 direct labor-hours
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