How many direct labor hours were estimated for the year

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Problem 1: The predetermined overhead rate is calculated by

Option 1: actual annual overhead divided by estimated annual activity level.
Option 2: estimated annual overhead divided by estimated manufacturing costs.
Option 3: estimated annual overhead divided by estimated annual activity level.
Option 4: estimated annual overhead divided by actual annual activity level.

Problem 2: Smith has applied overhead of $73,000 and actual overhead of $87,600 for the month of November. It applies overhead based on direct labor hours and those equaled 14,600 in November. Overhead for the year was estimated to be $900,000. How many direct labor hours were estimated for the year?

Option 1: 180,000
Option 2: $5
Option 3: 175,200
Option 4: 150,000

Reference no: EM132950439

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