Parsons Corporation Uses a Predetermined Overhead Rate Based on Direct

question 49

Multiple Choice

Parsons Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Last year, Parsons Corporation incurred $250,000 in actual manufacturing overhead cost. The Manufacturing Overhead account showed that overhead was overapplied $12,000 for the year. If the predetermined overhead rate was $8.00 per direct labor-hour, how many hours did the Corporation work during the year?

• A)31,250 hours
• B)30,250 hours
• C)32,750 hours
• D)29,750 hours

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