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

question 25

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 in the predetermined overhead rate must have been:

• 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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