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

Multiple Choice

Brace Corporation uses direct labor-hours in its predetermined overhead rate.At the beginning of the year,the estimated direct labor-hours were 21,600 hours.At the end of the year,actual direct labor-hours for the year were 20,400 hours,the actual manufacturing overhead for the year was $506,920,and manufacturing overhead for the year was underapplied by $23,440.The estimated manufacturing overhead at the beginning of the year used in the predetermined overhead rate must have been:

A) $501,920
B) $531,445
C) $483,480
D) $511,920