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# 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

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
Solution
Worked hours = (\$185,400-\$17,400)Ã·\$6 = 28,000
Company worked for 28,000 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?
29,400 hours
33,800 hours
28,000 hours
30,900 hours
Solution
Worked hours = (\$185,400-\$17,400)Ã·\$6 = 28,000
Company worked for 28,000 hours
.

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

1. 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)Ã·\$6 = 28,000 Company worked for 28,000 hours