Answer:
Actual direct labor hours= 32,750 hours
Explanation:
Giving the following information:
Actual overhead= $250,000 in actual manufacturing overhead cost. Overapplied overhead= $12,000 for the year.
The predetermined overhead rate was $8.00 per direct labor-hour
We need to reverse engineer the manufacturing overhead application process for the period.
Under/over applied overhead= real overhead - allocated overhead
If overhead was overapplied, the real overhead was lower than applied.
-12,000= 250,000 - allocated overhead
allocated overhead= $262,000
Now, we can determine the actual direct labor hours for the period:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
262,000= 8*Actual amount of allocation base
Actual direct labor hours= 32,750 hours
