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:

Traditional Work Group

A conventional team structure in an organization where members have specific roles and tasks, collaborating towards a common goal without high autonomy or flexibility.

First-line Supervisor

A managerial position responsible for directly overseeing and managing the work of entry-level or frontline employees.

Self-managing Responsibilities

Tasks or duties that an individual is accountable for completing on their own, often requiring self-discipline and time management skills.

Productivity Improvements

Involves strategies and actions taken to increase the efficiency and effectiveness of processes, leading to higher outputs with the same or reduced input levels.