Advanced Accounting
Advanced Accounting
12th Edition
ISBN: 9781305084858
Author: Paul M. Fischer, William J. Tayler, Rita H. Cheng
Publisher: Cengage Learning
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Chapter 2, Problem 2.2.3P
To determine

Introduction:

Worksheet of Consolidated Balance Sheet shows elimination and adjustments of values to prepare consolidated balance sheet.

Elimination Entries eliminate the investment account against the accounts that are to be shown on the consolidated worksheet.

To prepare: Consolidated worksheet on acquisition date.

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Please provide the correct answer to this general accounting problem using accurate calculations.
Please explain the solution to this general accounting problem with accurate explanations.
At the beginning of the year, manufacturing overhead for the year was estimated to be $720,000. At the end of the year, actual direct labor hours for the year were 36,000 hours, the actual manufacturing overhead for the year was $705,000, and the manufacturing overhead for the year was overapplied by $27,000. 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 ____ hours.
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