Question
At the beginning of the year, manufacturing overhead for the year was estimated to be $630,000. At the end of the year, actual direct labour-hours
At the beginning of the year, manufacturing overhead for the year was estimated to be $630,000. At the end of the year, actual direct labour-hours for the year were 35,900 hours, the actual manufacturing overhead for the year was $623,100, and manufacturing overhead for the year was over applied by $23,100. If the predetermined overhead rate is based on direct labour-hours, then the estimated direct labour hours at the beginning of the year used in the predetermined overhead rate must have been:
Select one:
a. 34,500 direct labour-hours
b. 33,333 direct labour-hours
c. 35,000 direct labour-hours
d. 35,900 direct labour-hours
e. 34,617 direct labour-hours
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