At the Beginning of the Year, Manufacturing Overhead for the Year

question 95

Multiple Choice

At the beginning of the year, manufacturing overhead for the year was estimated to be $267,500. At the end of the year, actual direct labor-hours for the year were 22,100 hours, the actual manufacturing overhead for the year was $262,500, and manufacturing overhead for the year was overapplied by $13,750. If the predetermined overhead rate is based on direct labor-hours, then the estimated direct labor-hours at the beginning of the year used to calculate the predetermined overhead rate was:

• A) 22,100 direct labor-hours.
• B) 19,900 direct labor-hours.
• C) 21,000 direct labor-hours.
• D) 21,400 direct labor-hours.

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Definitions:

Dutch Colony

Territories around the world that were controlled by the Netherlands from the 16th to the 20th century, notable for their trade networks and colonial influence.

New Netherland

A 17th-century colonial province of the Dutch Republic that was located on the East Coast of North America, including parts of present-day New York, New Jersey, Delaware, and Connecticut.

Hudson River

A river in New York, known for its beauty and historical importance in commerce and art.

Franciscans

A religious order within the Catholic Church founded by St. Francis of Assisi in the 13th century, known for their commitment to poverty and living a simple lifestyle.