Brothers Construction Uses a Predetermined Overhead Rate of $6

question 85

Multiple Choice

Brothers Construction uses a predetermined overhead rate of $6.00 per direct labor hour.Budgeted overhead was $720,000 and actual overhead incurred was $700,000.Actual direct labor hours worked were 125,000 hours.How many labor hours did Brothers plan to work during the year?

• A)120,000 hours
• B)116,667 hours
• C)20,833 hours
• D)Cannot be determined from the information given

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