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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 $185,400 in actual
manufacturing overhead cost. Overhead was underapplied by $17,400 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?
29,400 hours
33,800 hours
28,000 hours
30,900 hours
Dowan Company uses a predetermined overhead rate based on direct labor-hours to apply
manufacturing overhead to jobs. Last year Dowan Company incurred $185,400 in actual
manufacturing overhead cost. Overhead was underapplied by $17,400 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?
Solution
Worked hours = ($185,400-$17,400)÷$6 = 28,000
Company worked for 28,000 hours
Dowan Company uses a predetermined overhead rate based on direct labor.docx

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Dowan Company uses a predetermined overhead rate based on direct labor.docx

  • 1. Dowan Company uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Last year Dowan Company incurred $185,400 in actual manufacturing overhead cost. Overhead was underapplied by $17,400 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? 29,400 hours 33,800 hours 28,000 hours 30,900 hours Dowan Company uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Last year Dowan Company incurred $185,400 in actual manufacturing overhead cost. Overhead was underapplied by $17,400 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? Solution Worked hours = ($185,400-$17,400)÷$6 = 28,000 Company worked for 28,000 hours