Dowan Company Uses a Predetermined Overhead Rate Based on Direct

question 107

Multiple Choice

Dowan Company uses a predetermined overhead rate based on direct labour hours to apply manufacturing overhead to jobs.Last year,Dowan Company incurred $156,600 in actual manufacturing overhead cost.The Manufacturing Overhead account showed that overhead was underapplied by $12,600 for the year.If the predetermined overhead rate is $6.00 per direct labour-hour,how many hours did the company work during the year?

• A) 24,000 hours.
• B) 25,000 hours.
• C) 26,000 hours.
• D) 28,200 hours.

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