Question

cool hall inc. manufacutirng overhead for the year was estimated to be $702,540. if the predetermined overhead rate is based on direct labor hours, then the estimated direct labor hours if the predetermined overhead rate is based on direct labor-hours, than the estimated direct labor hours of the beginning of the year used tin the predetermined overhead rate must have been

Answer 1

31,504 direct labor hour

Step-by-step explanation:

The computation is shown below:

Manufacturing overhead applied is

= Actual Manufacturing overhead + Over-applied overhead

= $697,450 + $40,680

= $738,130

Now

Manufacturing overhead applied is

= Predetermined overhead rate × Actual direct labor hour

$738,130 = Predetermined overhead rate × 33,100 direct labor hour

Predetermined overhead rate is

= $738,130 ÷ 33,100 direct labor hour

= $22.30 direct labor hour

Now

Estimated direct labor hour = Estimated Manufacturing overhead ÷ Predetermined overhead rate

= $702,540 ÷ $22.30 direct labor hour

= 31,504 direct labor hour