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

question 143

Multiple Choice

At the beginning of the year, manufacturing overhead for the year was estimated to be $702,450. At the end of the year, actual direct labor-hours for the year were 33,100 hours, the actual manufacturing overhead for the year was $697,450, and manufacturing overhead for the year was overapplied by $40,680. 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) 31,500 direct labor-hours
• B) 29,452 direct labor-hours
• C) 31,276 direct labor-hours
• D) 33,100 direct labor-hours

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Definitions:

Aqueous Humor

Watery, clear solution that fills the anterior and posterior chambers of the eye.

Suspensory Ligament

A fibrous tissue that connects the lens of the eye to the ciliary body, adjusting the lens's shape for focusing.

Cones

Photoreceptor cells in the retina of the eye responsible for color vision.

Vitreous Humor

The clear, gel-like substance that fills the space between the lens and the retina of the eyeball.