Pinnini Co.uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs.Last year,Pinnini Company incurred $225,000 in actual manufacturing overhead cost.The Manufacturing Overhead account showed that overhead was overapplied $14,500 for the year.If the predetermined overhead rate was $5.00 per direct labor-hour,how many hours did the company work during the year?
A)45,000 hours
B)47,900 hours
C)42,100 hours
D)44,000 hours

Question

Quizplus · Accepted Answer

Overapplied manufacturing overhead= Manufacturing overhead applied - Actual manufacturing overhead
Manufacturing overhead applied = Actual manufacturing overhead + Overapplied manufacturing overhead
= $225,000 + $14,500
= $239,500
Manufacturing overhead applied = Predetermined overhead rate F1F1F1S1F1F1F10 Actual direct labor-hours
Actual direct labor-hours = Manufacturing overhead applied F1F1F1S1F1F1F10 Predetermined overhead rate
= $239,500 F1F1F1S1F1F1F10 $5.00 per direct labor-hour
= 47,900 direct labor-hours