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

question 9

Essay

At the beginning of the year,manufacturing overhead for the year was estimated to be $250,860.At the end of the year,actual direct labor-hours for the year were 20,800 hours,the actual manufacturing overhead for the year was $245,860,and manufacturing overhead for the year was underapplied by $10,820.The predetermined overhead rate is based on direct labour-hours.
Required:
What must have been the estimated direct labor-hours at the beginning of the year used in setting the predetermined overhead rate?

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Definitions:

Loan Cost

The total expense that a borrower incurs to take out a loan, including interest rates, fees, and any other charges.

Short-Term Loans

Short-term loans are financial obligations due for repayment within a year, often utilized for immediate cash flow needs.

Fixed Assets

Tangible or intangible items owned by a business that are used over a long period of time for the operation of the business, such as buildings, machinery, or equipment.

Working Capital

The disparity between an organization's immediate assets and liabilities, revealing its short-term fiscal stability and operational effectiveness.