Parsons Co

question 19

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

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Definitions:

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