Review Test Daniel ArandaGoogle Chrome Secure https Princip

Review Test -Daniel Aranda-Google Chrome Secure : https/ Principles of Managerial Accounting Review Quiz: Ch 3 Qu Score: 1 of 1 pt xitestResultid 6769955768back Daniel Aranda | 10018 10:13 110124 Test Score: 80 77% 21 of 2 3.4-158a Morgan Corporation uses eslimated direct labor hours of 200, 100 and estimated manufacturing ovethead costs of $920,100 in establishing manufacturing ovarhead rates. Actual manufacturing ovarhead was $970.300 and allocated manufacturing ovechead was $1,012.900 What was the number of actual direct hours worked? Round intermediary calculations to the nearest cent and the final answer to the nearest doliar ) OA. 200,100 208 885 189 748 220.196

Solution

Answer:

Option 4 i.e. 220,196

Predetermined Overhead Rate = Estimated Manufacturing Overhead / Estimated Direct Labor Hours
Estimated Manufacturing Overhead = $920,100
Estimated Direct Labor Hours = 200,100 DLH

Predetermined Overhead Rate = 920,100 / 200,100
Predetermined Overhead Rate = $4.60

Number of Direct Hours Worked = Allocated Manufacturing overhead / Predetermined Overhead Rate
Number of Direct Hours Worked = 1,012,900 / 4.60
Number of Direct Hours Worked = 220,195.65 or 220,196 DLH