Braam Corporation Uses Direct Labor-Hours in Its Predetermined Overhead Rate

Multiple Choice

Braam Corporation uses direct labor-hours in its predetermined overhead rate.At the beginning of the year,the estimated direct labor-hours were 11,500 hours.At the end of the year,actual direct labor-hours for the year were 9,700 hours,the actual manufacturing overhead for the year was $143,350,and manufacturing overhead for the year was underapplied by $18,220.The estimated manufacturing overhead at the beginning of the year used in the predetermined overhead rate must have been:

A) $164,023
B) $125,130
C) $148,350
D) $138,350