At the beginning of the year, manufacturing overhead for the year was estimated to be $916,725. At the end of the year, actual direct labor hours for the year were 36,330 hours, the actual manufacturing overhead for the year was $880,000, and the manufacturing overhead for the year was overapplied by $46,415. 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. 34,510 direct labor hours. b. 35,950 direct labor hours. c. 36,330 direct labor hours. d. 32,690 direct labor hours.

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 7EB: A company estimates its manufacturing overhead will be $840,000 for the next year. What is the...
icon
Related questions
Question

If you give me wrong answer I will give you unhelpful rate

At the beginning of the year, manufacturing overhead for the year
was estimated to be $916,725. At the end of the year, actual direct
labor hours for the year were 36,330 hours, the actual
manufacturing overhead for the year was $880,000, and the
manufacturing overhead for the year was overapplied by $46,415.
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. 34,510 direct labor hours.
b. 35,950 direct labor hours.
c. 36,330 direct labor hours.
d. 32,690 direct labor hours.
Transcribed Image Text:At the beginning of the year, manufacturing overhead for the year was estimated to be $916,725. At the end of the year, actual direct labor hours for the year were 36,330 hours, the actual manufacturing overhead for the year was $880,000, and the manufacturing overhead for the year was overapplied by $46,415. 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. 34,510 direct labor hours. b. 35,950 direct labor hours. c. 36,330 direct labor hours. d. 32,690 direct labor hours.
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Principles of Cost Accounting
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning