Please show calculations. Thank you for the help! At the beginning of the year,

Question

Please show calculations. Thank you for the help!

At the beginning of the year, manufacturing overhead for the year was estimated to be $283,400. At the end of the year, actual direct labor-hours for the year were 22,600 hours, the actual manufacturing overhead for the year was $266,400, and manufacturing overhead for the year was overapplied by $27,400. 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.)

21,400 direct labor-hours

20,300 direct labor-hours

21,800 direct labor-hours

22,600 direct labor-hours

Explanation / Answer

Solution:

The anser is c

Calculation:

Total applied = (Actual manufacturing overhead + overapplied manufacturing overhead)/ Direct labor hours

Total applied = ($266,400 + $27,400)/22,600 hours = 13 rate applied

Estimated OH= $283,400/13 = 21800 direct labor hours.

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