Parsons Co

Multiple Choice

Parsons Co. uses a predetermined overhead rate based on direct Labour hours to apply manufacturing overhead to jobs. Last year Parsons incurred £250,000 in actual manufacturing overhead cost. The Manufacturing Overhead account showed that overhead was overapplied in the amount of £12,000 for the year. If the predetermined overhead rate was £8.00 per direct Labour hour, how many hours were worked during the year

A) 31,250 hours
B) 30,250 hours
C) 32,750 hours
D) 29,750 hours