Tyare Corporation had the following inventory balances at th

Tyare Corporation had the following inventory balances at the beginning and end of May:

During May, $63,500 in raw materials (all direct materials) were drawn from inventory and used in production. The company\'s predetermined overhead rate was $12 per direct labor-hour, and it paid its direct labor workers $15 per hour. A total of 400 hours of direct labor time had been expended on the jobs in the beginning Work in Process inventory account. The ending Work in Process inventory account contained $7,550 of direct materials cost. The Corporation incurred $43,500 of actual manufacturing overhead cost during the month and applied $42,600 in manufacturing overhead cost.

The actual direct labor-hours worked during May totaled:

	May 1	May 30
Raw materials	$	30,500		$	40,000
Finished Goods	$	80,000		$	76,000
Work in Process	$	18,500		$	17,270

Solution

Actual Direct Labor Hours Worked - May = Applied Manufacturing Overhead / Predetermined Overhead Rate Actual Direct Labor Hours Worked - May = $42,600 / $12 per DL Actual Direct Labor Hours Worked - May = 3,550 Hours