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Dowan Company uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Last year Dowan Company incurred $187,200 in actual
Dowan Company uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Last year Dowan Company incurred $187,200 in actual manufacturing overhead cost. The Manufacturing Overhead account showed that manufacturing overhead was overapplied 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?
Select one:
a. 26,000 hours
b. 24,000 hours
c. 31,200 hours
d. 33,200 hours
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