Question

Thermalloy makes extruded aluminum heat sinks that are small devices that help cool semiconductors and printed circuit boards. Thermalloy uses an absorption costing system whereby all fixed and variable manufacturing overhead is absorbed to manufactured products via a single plantwide overhead rate that is estimated at the beginning of the year using a flexible manufacturing budget.
Volume is measured in direct labor hours. The following data summarize Thermalloy’s operations for the year:
Overabsorbed overhead........... $ 121,402
Budgeted variable overhead/ DL hour..... $ 9.00
Actual direct labor hours.......... 183,500
Budgeted fixed overhead......... $ 3,500,000
Actual overhead incurred.......... $ 5,200,098
Budgeted direct labor hours......... ???

Required:
Calculate Thermalloy’s budgeted direct labor hours.



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  • CreatedDecember 15, 2014
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