Bradbeer Corporation Uses Direct Labor-Hours in Its Predetermined Overhead Rate

question 45

Multiple Choice

Bradbeer Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct labor-hours were 17,500 hours. At the end of the year, actual direct labor-hours for the year were 16,000 hours, the actual manufacturing overhead for the year was $233,000, and manufacturing overhead for the year was underapplied by $15,400. The estimated manufacturing overhead at the beginning of the year used in the predetermined overhead rate must have been:

• A)$249,375
• B)$217,600
• C)$228,000
• D)$238,000

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Definitions:

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