The actual direct labor-hours worked during May totaled:

A) 2,800 hours
B) 3,500 hours
C) 3,300 hours
D) 3,600 hours

Question

The actual direct labor-hours worked during May totaled:A) 2,800 hoursB) 3,500 hoursC) 3,300 hoursD) 3,600 hours

Yogesh Pokharel · Accepted Answer

Final Answer : C, Explanation :  The question states that the predetermined overhead rate based on direct labor-hours was $8 per hour, and the total amount of overhead applied during May was $26,400. Therefore, the total direct labor-hours worked during May can be calculated by dividing the total amount of overhead applied during May ($26,400) by the predetermined overhead rate based on direct labor-hours ($8 per hour):$26,400 ÷ $8 per hour = 3,300 hours. Overhead applied = Predetermined overhead rate × Amount of the allocation base incurredAmount of the allocation base incurred = Overhead applied ÷ Predetermined overhead rateAmount of the allocation base incurred = $39,600 ÷ $12 per direct labor-hour = 3,300 direct labor-hours

The actual direct labor-hours worked during May totaled:

A) 2,800 hours
B) 3,500 hours
C) 3,300 hours
D) 3,600 hours

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