This Question: 2 pts 5 of 55 (0 complete) ? | > | This Test: 150 pts possi Davie

Question

This Question: 2 pts 5 of 55 (0 complete) ? | > | This Test: 150 pts possi Davie, Inc. used estimated direct labor hours of 245,000 and estimated manufacturing overhead costs of $1,200,000 in establishing its predetermined overhead allocation rate for the year. Actual results showed the following Actual manufacturing overhead $%700,000 Allocated manufacturing overhead$825,000 What was the number of direct labor hours worked during the year? (Round any intermediate calculations to two decimal places, and your final answer to the nearest whole number.) O A. 244,898 hours O B. 168,367 hours OC. 142,917 hours OD. 288,750 hours

Explanation / Answer

B. 168,367 hours

Predetermined overhead allocation rate per labor hour = Estimated manufacturing overhead costs / Estimated direct labor hours = $1,200,000 / 245,000 = $4.90

Number of direct labor hours worked = Allocated manufacturing overhead / Predetermined overhead allocation rate per labor hour = $825,000 / $4.90 = 168,367 hours

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