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23 September, 00:32

Morgan corporation uses estimated direct labor hours of 200 comma 700 and estimated manufacturing overhead costs of $ 920 comma 500 in establishing manufacturing overhead rates. actual manufacturing overhead was $ 970 comma 100 , and allocated manufacturing overhead was $ 1 comma 013 comma 000. what was the number of actual direct hours worked? (round intermediary calculations to the nearest cent and the final answer to the nearest dollar.)

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  1. 23 September, 00:35
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    Given:

    Estimated direct labor hours of 200,700 hrs

    Estimated manufacturing overhead costs of $920,500

    Actual manufacturing overhead costs of $970,100

    Allocated manufacturing overhead is $1,013,000

    Find the number of actual direct hours worked in Morgan Corporation?

    Determine first the overhead allocation rate by dividing the estimated overhead costs to the estimated direct labor hours: $920,500/200,700 hrs = $4.586 à round to nearest cent $4.60

    Next is divide the allocated manufacturing overhead to the overhead allocation rate: $1,013,000/$4.60 = 220,217.39 à round the answer to 220,217

    The actual number of direct hours worked is 220,217 hours.
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