At the beginning of the year,manufacturing overhead for the year was estimated to be $267,500.At the end of the year,actual direct labor-hours for the year were 22,100 hours,the actual manufacturing overhead for the year was $262,500,and manufacturing overhead for the year was overapplied by $13,750.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:
A)22,100 direct labor-hours
B)19,900 direct labor-hours
C)21,000 direct labor-hours
D)21,400 direct labor-hours

Question

Quizplus · Accepted Answer

Manufacturing overhead applied = Actual overhead + Overapplied overhead
= $262,500 + $13,750
= $276,250
Manufacturing overhead applied = Predetermined overhead rate F1F1F1S1F1F1F10 Actual direct labor-hours
Predetermined overhead rate = Manufacturing overhead applied F1F1F1S1F1F1F10 Actual direct labor-hours
= $276,250 F1F1F1S1F1F1F10 22,100 direct labor-hours
= $12.50 per direct labor-hour
Predetermined overhead rate = Estimated total manufacturing overhead F1F1F1S1F1F1F10 Estimated direct labor-hours
Estimated direct labor-hours = Estimated total manufacturing overhead F1F1F1S1F1F1F10 Predetermined overhead rate
= $267,500 F1F1F1S1F1F1F10 $12.50 per direct labor-hour
= 21,400 direct labor-hours

At the Beginning of the Year,manufacturing Overhead for the Year