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Serena Corporation uses estimated manufacturing overhead costs of​ $880,600 and estimated direct labor hours of​ 200,000 in establishing manufacturing overhead rates. Allocated manufacturing overhead was​ $1,012,100 and actual manufacturing overhead was​ $970,500. What were the number of actual direct hours​ worked? (Round intermediary calculations to the nearest cent and the final answer to the nearest​ dollar.)

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TomShelby

Answer:

the actual hours were 229,866

Explanation:

[tex]\frac{Cost\: Of \:Manufacturing \:Overhead}{Cost \:Driver}= Overhead \:Rate[/tex]

the predetermined overhead rate will be the quotient between the expected overhead and the expected value of the cost driver.

880,600 / 200,000 = 4.403

If we allocated 1,012,100

then actual hours x 4.403 = 1,012,100

actual hours = 1,012,100 / 4.403 = 229.866,000

the actual hours were 229,866

Answer:

The number of actual direct hours​ worked is $229,866 hours

Explanation:

In this question, first, we have to compute the predetermined overhead rate which is shown below:

Predetermined overhead rate = (Estimated manufacturing overhead costs) ÷ (Estimated direct labor hours)

= $880,600 ÷ $200,000

= $4.403

Now the number of actual direct hours​ worked equals to

=  (Allocated manufacturing overhead) ÷ (Predetermined overhead rate)

=  ($1,012,100) ÷ ($4.403)

= $229,866 hours

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