Tyare Corporation had the following inventory balances at the beginning and end
ID: 2402801 • Letter: T
Question
Tyare Corporation had the following inventory balances at the beginning and end of May:
During May, $61,000 in raw materials (all direct materials) were drawn from inventory and used in production. The company's predetermined overhead rate was $12 per direct labor-hour, and it paid its direct labor workers $15 per hour. A total of 350 hours of direct labor time had been expended on the jobs in the beginning Work in Process inventory account. The ending Work in Process inventory account contained $7,300 of direct materials cost. The Corporation incurred $42,750 of actual manufacturing overhead cost during the month and applied $41,100 in manufacturing overhead cost.
The actual direct labor-hours worked during May totaled:
Multiple Choice
3,425 hours
2,850 hours
3,563 hours
4,200 hours
May 1 May 30 Raw materials $ 28,000 $ 35,000 Finished Goods $ 77,500 $ 71,000 Work in Process $ 16,000 $ 16,885Explanation / Answer
Applied overhead In May = $41,100, Predetermined overhead rate = $12 per direct labor hr
Applied overhead = Predetermined overhead rate*Actual direct labor hrs
Actual direct labor hrs = $41,100/$12 = 3,425 hrs.
Ans is option 1 - 3,425 hrs.
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