Asked by
Nailah lawson
on Nov 19, 2024
Verified
At the beginning of the year, manufacturing overhead for the year was estimated to be $994,125. At the end of the year, actual direct labor-hours for the year were 36,370 hours, the actual manufacturing overhead for the year was $940,000, and manufacturing overhead for the year was overapplied by $60,175. 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: (Do not round intermediate calculations.)
A) 34,182 direct labor-hours
B) 36,150 direct labor-hours
C) 36,370 direct labor-hours
D) 31,994 direct labor-hours
Direct Labor-Hours
Aggregate work hours of employees directly participating in production activities.
Overapplied Overhead
A scenario in which the overhead costs assigned to manufacturing exceed the overhead expenses actually incurred.
- Utilize understanding of manufacturing overhead application and its adjustment in calculating costs.
- Ascertain the predefined overhead rate using direct labor-hours and manufacturing expenses.
Verified Answer
PO
Learning Objectives
- Utilize understanding of manufacturing overhead application and its adjustment in calculating costs.
- Ascertain the predefined overhead rate using direct labor-hours and manufacturing expenses.
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