Simon Manufacturing Company uses a predetermined overhead application rate of $10 per direct labour hour. A review of Simon's accounting records for the year just ended discovered the following: Underapplied manufacturing overhead: $9,000
Actual manufacturing overhead: $400,000
Budgeted labour hours: 50,000
Simon's actual labour hours worked totaled:
A)39,100
B)40,000.
C)40,900
D)49,872
E)50,000

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The Answer of Simon Manufacturing Company uses a predetermined overhead application rate of $10 per direct labour hour. A review of Simon's accounting records for the year just ended discovered the following: Underapplied manufacturing overhead: $9,000
Actual manufacturing overhead: $400,000
Budgeted labour hours: 50,000
Simon's actual labour hours worked totaled:
A)39,100
B)40,000.
C)40,900
D)49,872
E)50,000

Simon Manufacturing Company Uses a Predetermined Overhead Application Rate of $10