The following information is available from the accounting records of Anderson Toy Company from the most recent year.

Predetermined Overhead application rate $4.00 per direct labor hour

Over applied manufacturing overhead for the year $7,600

Actual manufacturing overhead cost incurred during the year $200,000

budgeted direct labor wage $12.50

Budgeted direct labor cost for the year $625,000

Determine the actual labor hours worked for the last year. Please show work.

The answer is either $48,100 or $51,900 hours.

the formula I am used to working with is Actual Hrs =(Actual OH-Underapplied OH)/Predeterminde OH application rate. I have not had a problem with OVERappplied OH.