At the Beginning of the Year, Manufacturing Overhead for the Year

Multiple Choice

At the beginning of the year, manufacturing overhead for the year was estimated to be $702,450. At the end of the year, actual direct labor-hours for the year were 33,100 hours, the actual manufacturing overhead for the year was $697,450, and manufacturing overhead for the year was overapplied by $40,680. If the predetermined overhead rate is based on direct labor-hours, then the estimated direct labor-hours at the beginning of the year used in the predetermined overhead rate must have been:

A) 31,500 direct labor-hours
B) 29,452 direct labor-hours
C) 31,276 direct labor-hours
D) 33,100 direct labor-hours