Pacific Engineering Solutions uses a predetermined overhead rate based on direct labor hours. At the start of the current year, the company estimated that its total manufacturing overhead would be $525,000. During the year: • • • Actual manufacturing overhead incurred = $480,000 The overhead account showed under applied overhead of $21,000 The predetermined overhead rate was $35.00 per direct labor hour How many direct labor hours were worked during the year?

Pacific Engineering Solutions uses a predetermined overhead rate based on direct labor hours. At the start of the current year, the company estimated that its total manufacturing overhead would be $525,000. During the year: • • • Actual manufacturing overhead incurred = $480,000 The overhead account showed under applied overhead of $21,000 The predetermined overhead rate was $35.00 per direct labor hour How many direct labor hours were worked during the year?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 3EA: A company estimated 100,000 direct labor hours and $800,000 in overhead. The actual overhead was...

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