Meyers Corporation had the following inventory balances at the beginning and end
ID: 2421252 • Letter: M
Question
Meyers Corporation had the following inventory balances at the beginning and end of November: November 1 November 30 Raw Materials $ 40,000 $ 16,000 Finished Goods $ 118,000 $ 103,000 Work in Process $ 20,000 $ 26,000 During November, $92,000 in raw materials (all direct materials) were drawn from inventory and used in production. The company's predetermined overhead rate was $6 per direct labor-hour, and it paid its direct labor workers $8 per hour. A total of 700 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 $11,000 of direct materials cost. The Corporation incurred $66,000 of actual manufacturing overhead cost during the month and applied $62,000 in manufacturing overhead cost. The actual direct labor-hours worked during November totaled: (Round your answers to the nearest dollar.) 10,333 hours 7,750 hours 8,250 hours 11,000 hours
Explanation / Answer
The actual direct labor-hours worked during November totaled = (actual manufacturing overhead cost / direct labor workers pay per hour)
= 66000 / 8
= 8250
Hence the answer is 8250 hours.