Dowan Company Uses a Predetermined Overhead Rate Based on Direct

question 130

Multiple Choice

Dowan Company uses a predetermined overhead rate based on direct labor-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 manufacturing overhead was underapplied by $12,600 for the year.If the predetermined overhead rate is $6.00 per direct labor-hour,how many hours did the company work during the year?

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

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