Kingsley Products estimated that direct labor for the year would be 64,000 hours. The company also estimated that the fixed overhead cost for the year would be $160,000. They further estimated the variable overhead cost to be $4.00 per direct labor-hour. All overhead at Kingsley Products is applied on the basis of direct labor-hours. During the year, fixed overhead costs were exactly as planned ($160,000). Variable overhead was incurred at $4.50 per direct labor-hour. Underapplied overhead for the year was calculated as $18,000. Required: How many direct labor-hours were worked during the period? Note: Do not round intermediate calculations. Direct labor-hours

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Kingsley Products estimated that direct labor for the year would be 64,000 hours. The company also estimated that the fixed overhead
cost for the year would be $160,000. They further estimated the variable overhead cost to be $4.00 per direct labor-hour. All overhead
at Kingsley Products is applied on the basis of direct labor-hours. During the year, fixed overhead costs were exactly as planned
($160,000). Variable overhead was incurred at $4.50 per direct labor-hour. Underapplied overhead for the year was calculated as
$18,000.
Required:
How many direct labor-hours were worked during the period?
Note: Do not round intermediate calculations.
Direct labor-hours
Transcribed Image Text:Kingsley Products estimated that direct labor for the year would be 64,000 hours. The company also estimated that the fixed overhead cost for the year would be $160,000. They further estimated the variable overhead cost to be $4.00 per direct labor-hour. All overhead at Kingsley Products is applied on the basis of direct labor-hours. During the year, fixed overhead costs were exactly as planned ($160,000). Variable overhead was incurred at $4.50 per direct labor-hour. Underapplied overhead for the year was calculated as $18,000. Required: How many direct labor-hours were worked during the period? Note: Do not round intermediate calculations. Direct labor-hours
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