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if the predetermined overhead rate is based on direct labor-hours, then the estimated labor-hours at the beginning of the year used in the predetermined overhead rate must have been:

Answer :

Parrain

Answer: 22,200 hours

Explanation:

Estimated direct labor hours = Estimated total manufacturing OH/ Predetermined overhead rate

Predetermined Overhead rate = Applied Manufacturing Overhead / Actual direct labor hours

= (Actual Manufacturing Overhead + Overapplied overhead) / Actual direct labor hours

= ( 265,400 + 18,560) / 22,900

= $12.40 per labor hour

Estimated direct labor hours = Estimated total manufacturing OH/ Predetermined overhead rate

= 275,280/ 12.40

= 22,200 hours

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