Smith has applied overhead of $73,000 and actual overhead of $87,600 for the mon

Question

Smith has applied overhead of $73,000 and actual overhead of $87,600 for the month of November. It applies overhead based on direct labor hours and those equaled 14,600 in November. Overhead for the year was estimated to be $900,000. How many direct labor hours were estimated for the year?
a. 175,200 b. 180,000 c. $5 d. 150,000 e. $6 Smith has applied overhead of $73,000 and actual overhead of $87,600 for the month of November. It applies overhead based on direct labor hours and those equaled 14,600 in November. Overhead for the year was estimated to be $900,000. How many direct labor hours were estimated for the year?
a. 175,200 b. 180,000 c. $5 d. 150,000 e. $6 175,200 180,000 $5 150,000 $6 a. 175,200 b. 180,000 c. $5 d. 150,000 e. $6

Explanation / Answer

Hi,

Please check:

Estimated rate per hour = 73000/14600 = 5

Direct Labor Hours for the Year = 900000/5 = 180000

Thanks.

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