Question

Meyers Corporation had the following inventory balances at the beginning and end of November:

November 1 November 30
Raw Materials $ 80,000 $ 14,000
Finished Goods $ 220,000 $ 150,000
Work in Process $ 26,000 $ 50,000

During November, $170,000 in raw materials (all direct materials) were drawn from inventory and used in production. The company's predetermined overhead rate was $6 per direct labor-hour, and it paid its direct labor workers $7 per hour. A total of 1,000 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 $20,000 of direct materials cost. The Corporation incurred $120,000 of actual manufacturing overhead cost during the month and applied $110,000 in manufacturing overhead cost.

The actual direct labor-hours worked during November totaled ____________.

Answer 1

The company's workers worked a total of 17,333.33 direct labor-hours in November, calculated by dividing the applied overhead by the predetermined overhead rate and then subtracting the hours already present in the beginning work in process.

Step-by-step explanation:

To find the actual direct labor-hours worked during November, we start by determining the overhead applied to work in process. The predetermined overhead rate is $6 per direct labor-hour, and the overhead applied is $110,000. Dividing the applied overhead by the overhead rate should yield the total labor hours:

$110,000 \u00f7 $6 per direct labor-hour = 18,333.33 hours

However, since the beginning work in process already had 1,000 hours of labor in it, to find the actual hours worked in November, we must subtract this from our calculated total:

18,333.33 hours - 1,000 hours = 17,333.33 hours

Therefore, the company's workers worked a total of 17,333.33 direct labor-hours in the month of November.