At the beginning of the year, manufacturing overhead for the year was estimated to be $726,725. At the end of the year, actual labor hours for the year were 36,230 hours, the actual manufacturing overhead for the year was $710,000, and the manufacturing overhead for the year was overapplied by $32,715. If the predetermined overhead rate is based on direct labor hours, then the estimated labor hours at the beginning of the year used in the predetermined overhead rate must have been: a. 34,634 direct labor hours. b. 35,450 direct labor hours. c. 36,230 direct labor hours. d. 33,038 direct labor hours.

At the beginning of the year, manufacturing overhead for the year was estimated to be $726,725. At the end of the year, actual labor hours for the year were 36,230 hours, the actual manufacturing overhead for the year was $710,000, and the manufacturing overhead for the year was overapplied by $32,715. If the predetermined overhead rate is based on direct labor hours, then the estimated labor hours at the beginning of the year used in the predetermined overhead rate must have been: a. 34,634 direct labor hours. b. 35,450 direct labor hours. c. 36,230 direct labor hours. d. 33,038 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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