Question

Serena Corporation uses estimated manufacturing overhead costs of​ $880,600 and estimated direct labor hours of​ 200,000 in establishing manufacturing overhead rates. Allocated manufacturing overhead was​ $1,012,100 and actual manufacturing overhead was​ $970,500. What were the number of actual direct hours​ worked? (Round intermediary calculations to the nearest cent and the final answer to the nearest​ dollar.)

Answer 1

The number of actual direct hours​ worked is $229,866 hours

Step-by-step explanation:

In this question, first, we have to compute the predetermined overhead rate which is shown below:

Predetermined overhead rate = (Estimated manufacturing overhead costs) ÷ (Estimated direct labor hours)

= $880,600 ÷ $200,000

= $4.403

Now the number of actual direct hours​ worked equals to

= (Allocated manufacturing overhead) ÷ (Predetermined overhead rate)

= ($1,012,100) ÷ ($4.403)

= $229,866 hours

Answer 2

the actual hours were 229,866

Step-by-step explanation:

`(Cost\: Of \:Manufacturing \:Overhead)/(Cost \:Driver)= Overhead \:Rate`

the predetermined overhead rate will be the quotient between the expected overhead and the expected value of the cost driver.

880,600 / 200,000 = 4.403

If we allocated 1,012,100

then actual hours x 4.403 = 1,012,100

actual hours = 1,012,100 / 4.403 = 229.866,000

the actual hours were 229,866