Question

Boulder Corporation uses estimated direct labor hours of

200 comma 500200,500

and estimated manufacturing overhead costs of

$ 920 comma 800$920,800

in establishing manufacturing overhead rates. Actual manufacturing overhead was

$ 970 comma 300$970,300 ,

and allocated manufacturing overhead was

$ 1 comma 012 comma 600$1,012,600.

What was the number of actual direct hours worked? (Round intermediary calculations to the nearest cent and the final answer to the nearest dollar.)

Answer 1

Estimated Manufacturing Overheads	$    9,20,800
Estimated labor hours	2,00,500
Overhead rate(920800/200500)	$    4.59

Overheads applied	$ 10,12,600.00
Overhead rate	$    4.59
Actual labor hours(1012600/4.59)	2,20,610