Terne Corporation had projected its fixed overhead costs to be $240,000. Direct labor was estimated to total
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Terne Corporation had projected its fixed overhead costs to be $240,000. Direct labor was estimated to total 30,000 hours during the year, and the direct labor-hours would be used as a basis for the application of overhead. During the year, all overhead costs were exactly as planned ($240,000). There was $8,000 in overapplied overhead.
How many direct labor-hours were worked during the period? Show computations.
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