Multiple Choice
Dowan Company uses a predetermined overhead rate based on direct labour hours to apply manufacturing overhead to jobs. Last year Dowan Company incurred $156,600 in actual manufacturing overhead cost. The Manufacturing Overhead account showed that overhead was underapplied by $12,600 for the year. If the predetermined overhead rate is $6.00 per direct labour hour, how many hours did the company work during the year?
A) 28,200 hours.
B) 25,000 hours.
C) 26,000 hours.
D) 24,000 hours.
Correct Answer:
Verified
Correct Answer:
Verified
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