Estimate Hours Worked from Overhead Data
Valley Corporation estimated that direct labor for the year would be 58,500 hours. Valley's overhead (all fixed) is applied on the basis of direct labor-hours. The company estimates its overhead costs at $234,000. During the year, all overhead costs were exactly as planned ($234,000).
There was $7,800 in overapplied overhead.
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How many direct labor-hours were worked during the period? Show computations.