At the beginning of the year, manufacturing overhead for the year was estimated
ID: 2377747 • Letter: A
Question
At the beginning of the year, manufacturing overhead for the year was estimated to be $269,620. At the end of the year, actual direct labor-hours for the year were 22,800 hours, the actual manufacturing overhead for the year was $262,900, and manufacturing overhead for the year was overapplied by $15,260. 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: (Round your intermediate calculations to 2 decimal places.)
At the beginning of the year, manufacturing overhead for the year was estimated to be $269,620. At the end of the year, actual direct labor-hours for the year were 22,800 hours, the actual manufacturing overhead for the year was $262,900, and manufacturing overhead for the year was overapplied by $15,260. 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: (Round your intermediate calculations to 2 decimal places.)
Explanation / Answer
21,700 direct labor-hours
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