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Darrow Company uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Last year, the company worked 24,000 direct labor-hours
Darrow Company uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Last year, the company worked 24,000 direct labor-hours and incurred $144,000 of actual manufacturing overhead cost. If overhead was underapplied by $9,360, the predetermined overhead rate for the company for the year must have been:
$5.61
$6.00
$6.39
$6.78
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