Simon Manufacturing Company Uses a Predetermined Overhead Application Rate of $10

Multiple Choice

Simon Manufacturing Company uses a predetermined overhead application rate of $10 per direct labour hour. A review of Simon's accounting records for the year just ended discovered the following: Underapplied manufacturing overhead: $9,000
Actual manufacturing overhead: $400,000
Budgeted labour hours: 50,000
Simon's actual labour hours worked totaled:

A) 39,100
B) 40,000.
C) 40,900
D) 49,872
E) 50,000