Tyare Corporation had the following inventory balances at the beginning and end
ID: 2341619 • Letter: T
Question
Tyare Corporation had the following inventory balances at the beginning and end of May:
During May, $64,500 in raw materials (all direct materials) were drawn from inventory and used in production. The company's predetermined overhead rate was $12 per direct labor-hour, and it paid its direct labor workers $15 per hour. A total of 420 hours of direct labor time had been expended on the jobs in the beginning Work in Process inventory account. The ending Work in Process inventory account contained $7,650 of direct materials cost. The Corporation incurred $43,800 of actual manufacturing overhead cost during the month and applied $43,200 in manufacturing overhead cost.
The actual direct labor-hours worked during May totaled:
Multiple Choice
2,920 hours
3,650 hours
3,600 hours
5,040 hours
May 1 May 30 Raw materials $ 31,500 $ 42,000 Finished Goods $ 81,000 $ 78,000 Work in Process $ 19,500 $ 17,424Explanation / Answer
Applied overhead = Predetermined overhead rate per direct labor hour x Direct Labor hours
$ 43,200 = $ 12 x Direct Labor hours
$ 43,200 / $ 12 = Direct Labor hours
3,600 = Direct Labor hours
So, Answer is 3rd Option 3,600 hour
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