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Tarot Company Has a Predetermined Overhead Rate of $6 Per

Question 126

Multiple Choice

Tarot Company has a predetermined overhead rate of $6 per direct labor hour. Last year the company incurred $156,600 of actual manufacturing overhead cost and the account was $12,600 underapplied. How many direct labor hours were worked during the year?


A) 24,000 direct labor hours
B) 25,000 direct labor hours
C) 26,000 direct labor hours
D) 28,200 direct labor hours

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