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21 May, 14:24

Showboat Corporation had actual manufacturing overhead costs for the most recent year of $ 29 comma 500$29,500. Manufacturing overhead is allocated using a predetermined manufacturing overhead rate of $ 2.50$2.50 per direct labor hour. Direct labor cost is $ 27$27 per hour. At the end of the year, Cabaret Corporation found it had overallocated manufacturing overhead by $ 1 comma 850$1,850. How many direct labor hours were worked in total during the year? (Round your final answer to the nearest hour.)

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  1. 21 May, 14:35
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    The direct labor hours that worked in total during the year is 12,540 hours

    Explanation:

    The computation of the direct labor hours worked is shown below:

    = Total labor cost : cost per hour

    where,

    Total labor cost = Manufacturing cost + over allocated manufacturing overhead

    = $29,500 + $1,850

    = $31,350

    And, the rate per hour is $2.50

    Now put these values to the above formula

    So, the direct labor hours would equal to

    = $31,350 : $2.50

    = $12,540 hours
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