Brabec Corporation uses direct labor-hours in its predetermined overhead rate.At the beginning of the year,the estimated direct labor-hours were 19,700 hours.At the end of the year,actual direct labor-hours for the year were 17,700 hours,the actual manufacturing overhead for the year was $392,940,and manufacturing overhead for the year was underapplied by $35,400.
Required:
What must have been the estimated manufacturing overhead cost at the beginning of the year used setting the predetermined overhead rate?

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The Answer of Brabec Corporation uses direct labor-hours in its predetermined overhead rate.At the beginning of the year,the estimated direct labor-hours were 19,700 hours.At the end of the year,actual direct labor-hours for the year were 17,700 hours,the actual manufacturing overhead for the year was $392,940,and manufacturing overhead for the year was underapplied by $35,400.
Required:
What must have been the estimated manufacturing overhead cost at the beginning of the year used setting the predetermined overhead rate?

Brabec Corporation Uses Direct Labor-Hours in Its Predetermined Overhead Rate