Answer:
estimated direct labor hours= 21,400 hours
Explanation:
Giving the following information:
Estimated overhead= $267,500.
Actual direct labor hours= 22,100 hours
Actual manufacturing overhead= $262,500
Overapplied overhead= $13,750
<u>We need to reverse engineer the allocation process of overhead costs to calculate the estimated overhead hour:</u>
Under/over applied overhead= real overhead - allocated overhead
-13,750= 262,500 - allocated overhead
276,250= allocated overhead
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
276,250= Estimated manufacturing overhead rate*22,100
$12.5= Estimated manufacturing overhead rate
Finally, we can calculate the estimated direct labor hours:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
12.5= 267,500/ estimated direct labor hours
estimated direct labor hours= 21,400 hours
