Question

Tyler Company applies manufacturing overhead to production at the rate of $5.3 per direct labor hour and ended August with $13,300 underapplied overhead. Actual manufacturing overhead incurred for August amounted to $120,890. Required: How many direct labor hours did Tyler Company incur during August

Answer 1

118,380.57 labor hours

Step-by-step explanation:

Data provided as per the question

Actual manufacturing overhead = $120,890

Under applied overhead = $13,300

Production rate = $5.3

The computation of labor hours is shown below:-

Actual manufacturing overhead - Under applied overhead ÷ Production rate

= $120,890 - $13,300 ÷ $5.3

= $120,890 - $2,509.43

= 118,380.57 labor hours

Therefore for computing the labor hour we simply applied the above formula.