Answer:
estimated direct labor hours= 35,700 hours
Explanation:
Giving the following information:
Estimated overhead= $821,100.
Actual direct-labor hours= 36,280 hours
Actual manufacturing overhead= $790,000
Manufacturing overhead for the year was overapplied by $44,440.
We need to reverse engineer the overhead application process to calculate the estimated direct labor hours.
Under/over applied overhead= real overhead - allocated overhead
-44,440= 790,000 - allocated overhead
allocated overhead= 834,440
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
834,440= Estimated manufacturing overhead rate*36,280
Estimated manufacturing overhead rate= $23
Finally, we can determine the estimated direct labor hours:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
23= 821,100/ estimated direct labor hours
estimated direct labor hours= 821,100/23
estimated direct labor hours= 35,700 hours
