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The Following Data Are Available for Johnson Machine Builders  Estimated direct labour hours 200000 Applied overhead $750000\begin{array}{lr}\text { Estimated direct labour hours } & 200000 \\\text { Applied overhead } & \$ 750000\end{array}

question 48

Essay

The following data are available for Johnson machine builders:
 Estimated direct labour hours 200000 Applied overhead $750000\begin{array}{lr}\text { Estimated direct labour hours } & 200000 \\\text { Applied overhead } & \$ 750000\end{array}

The applied overhead rate is $5 per direct labour hour.
Required:
A. What was the actual direct labour hours for the year?
B. How would your answer to Part A change, if the applied overhead rate was 40 per cent less than given in the question?


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