Pinnini Co

Multiple Choice

Pinnini Co. uses a predetermined overhead rate based on direct Labour hours to apply manufacturing overhead to jobs. Last year, Pinnini Company incurred £225,000 in actual manufacturing overhead cost. The Manufacturing Overhead account showed that overhead was overapplied £14,500 for the year. If the predetermined overhead rate was £5.00 per direct Labour hour, how many hours did the company work during the year

A) 45,000 hours
B) 47,900 hours
C) 42,100 hours
D) 44,000 hours