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The Mighty Helpers, a firm which manufactures mittens and gloves, uses a predetermined overhead rate, based on Direct Labor Hours, to apply manufacturing overhead to
The Mighty Helpers, a firm which manufactures mittens and gloves, uses a predetermined overhead rate, based on Direct Labor Hours, to apply manufacturing overhead to jobs. Last year, MH incurred, or spent, $400,000 in actual manufacturing overhead cost. The Manufacturing Overhead Control account showed that overhead was underapplied by $40,000 for the entire year. If the predetermined overhead rate was $16 per Direct Labor Hour, how many Direct Labor Hours did the company actually work during the year?
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