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Question Content AreaJohn has applied overhead of $80,000 and actual overhead of $70,600 for the month of November. He applies overhead based on direct labor hours, and that amounts to 10,000 hours for the month of November. The overhead for the year was estimated to be $1,120,000. How many direct labor hours were estimated for the year? a.500,000 b.140,000 c.225,200 d.150,000

Respuesta :

The labor hours were estimated for the year were 140,000.

Step 1

applied overhead =$80,000

hours = 10,000

⇒ rate =80,000/10,000

⇒8

Step 2

labor hours were estimated= $1,120,000/8

⇒140,000

The labor hours were estimated for the year were 140,000

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