Dowan Company uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Last year Dowan Company incurred $225,000 in actual manufacturing overhead cost. Overhead was underapplied by $24,000 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?

Which is the answer below:

35,450 hours 37,500 hours 33,500 hours 41,500 hours