For the current year,Paxman Company incurred $150,000 in actual manufacturing overhead cost.The Manufacturing Overhead account showed that overhead was overapplied in the amount of $6,000 for the year.If the predetermined overhead rate was $8.00 per direct labour hour,how many hours were worked during the year?
A) 17,750 hours.
B) 18,000 hours.
C) 18,750 hours.
D) 19,500 hours.DL Hours = $156,000/$8/hr = 19,500 hours

Question

Quizplus · Accepted Answer

We can calculate the total amount of manufacturing overhead applied by subtracting the overapplied amount from the actual amount of overhead incurred: $150,000 - $6,000 = $144,000. We can then divide this amount by the predetermined overhead rate to find the total number of direct labor hours worked: $144,000 ÷ $8/hr = 18,000 hours. Therefore, the correct answer is D.

For the Current Year,Paxman Company Incurred $150,000 in Actual Manufacturing