Kingsley Products estimated that direct. labor for the year would be 64,080 hours. The company also estimated that the fixed overhead cost for the year would be $160,200. 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 ($160,200). Variable overhead was incurred at $4.50 per direct labor-hour. Underapplied overhead for the year was calculated as $18,150. Required: How many direct labor-hours were worked during the period?
Kingsley Products estimated that direct. labor for the year would be 64,080 hours. The company also estimated that the fixed overhead cost for the year would be $160,200. 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 ($160,200). Variable overhead was incurred at $4.50 per direct labor-hour. Underapplied overhead for the year was calculated as $18,150. Required: How many direct labor-hours were worked during the period?
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Kingsley Products estimated that direct.
labor for the year would be 64,080
hours. The company also estimated
that the fixed overhead cost for the
year would be $160,200. 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
($160,200). Variable overhead was
incurred at $4.50 per direct labor-hour.
Underapplied overhead for the year
was calculated as $18,150.
Required:
How many direct labor-hours were
worked during the period?
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