Meyers Corporation had the following inventory balances at the beginning and end of November: During November,$39,000 in raw materials (all direct materials)were drawn from inventory and used in production.The company's predetermined overhead rate was $8 per direct labor-hour,and it paid its direct labor workers $10 per hour.A total of 300 hours of direct labor time had been expended on the jobs in the beginning Work in Process inventory account.The ending Work in Process inventory account contained $4,700 of direct materials cost.The Corporation incurred $28,000 of actual manufacturing overhead cost during the month and applied $26,400 in manufacturing overhead cost. The actual direct labor-hours worked during November totaled:
A)2,800 hours
B)3,300 hours
C)3,500 hours
D)3,600 hours

Question

Meyers Corporation had the following inventory balances at the beginning and end of November:  During November,$39,000 in raw materials (all direct materials)were drawn from inventory and used in production.The company's predetermined overhead rate was $8 per direct labor-hour,and it paid its direct labor workers $10 per hour.A total of 300 hours of direct labor time had been expended on the jobs in the beginning Work in Process inventory account.The ending Work in Process inventory account contained $4,700 of direct materials cost.The Corporation incurred $28,000 of actual manufacturing overhead cost during the month and applied $26,400 in manufacturing overhead cost. The actual direct labor-hours worked during November totaled:
A)2,800 hours 
B)3,300 hours 
C)3,500 hours 
D)3,600 hours

Quizplus · Accepted Answer

Overhead applied = Predetermined overhead rate × Amount of the allocation base incurred
Amount of the allocation base incurred = Overhead applied ÷ Predetermined overhead rate
Amount of the allocation base incurred = $26,400 ÷ $8 per direct labor-hour = 3,300 direct labor-hours

Meyers Corporation Had the Following Inventory Balances at the Beginning