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

Multiple Choice

Brabo Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct labor-hours were 15,700 hours. At the end of the year, actual direct labor-hours for the year were 16,700 hours, the actual manufacturing overhead for the year was $352,960, and manufacturing overhead for the year was overapplied by $27,800. The estimated manufacturing overhead at the beginning of the year used in the predetermined overhead rate must have been:

A) $327,124
B) $357,960
C) $380,760
D) $347,960