Farrina Manufacturing Uses a Predetermined Overhead Application Rate of $8

Multiple Choice

Farrina Manufacturing uses a predetermined overhead application rate of $8 per direct labor hour. A review of the company's accounting records for the year just ended discovered the following:
Underapplied manufacturing overhead: $7,200
Actual manufacturing overhead: $392,000
Budgeted labor hours: 50,000
Simone's actual labor hours worked totaled:

A) 48,100.
B) 49,100.
C) 49,900.
D) 50,900.
E) cannot be determined based on the information presented.