Golden Corporation uses direct labor-hours in its predeterminedoverhead rate. At the beginning of the...

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Accounting

Golden Corporation uses direct labor-hours in its predeterminedoverhead rate. At the beginning of the year, the estimated directlabor-hours were 22,700 hours. At the end of the year, actualdirect labor-hours for the year were 21,500 hours, the actualmanufacturing overhead for the year was $557,740, and manufacturingoverhead for the year was underapplied by $24,540. The estimatedmanufacturing overhead at the beginning of the year used in thepredetermined overhead rate must have been:
$552,520.
$583,366.
$533,200.
$562,960.

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4.3 Ratings (570 Votes)


Actual manufacturing overhead			557,740
manufacturing overhead under applied			-24,540
Manufacturing overhead applied			533,200


Applied manufacturing overhead = overhead rate * actual hrs
533,200 = x *21500
x = 533200/21500
		24.8

predetermined overhead rate = estimated MOH/estimated direct labor hrs

24.8 = x/22700
x = 24.8*22700
	562960	answer

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Transcribed Image Text

In: AccountingGolden Corporation uses direct labor-hours in its predeterminedoverhead rate. At the beginning of the year,...Golden Corporation uses direct labor-hours in its predeterminedoverhead rate. At the beginning of the year, the estimated directlabor-hours were 22,700 hours. At the end of the year, actualdirect labor-hours for the year were 21,500 hours, the actualmanufacturing overhead for the year was $557,740, and manufacturingoverhead for the year was underapplied by $24,540. The estimatedmanufacturing overhead at the beginning of the year used in thepredetermined overhead rate must have been:$552,520.$583,366.$533,200.$562,960.