In the current year, Lennox Manufacturing incurred $120,000 in actual manufacturing overhead costs. The Manufacturing Overhead account showed that overhead was over applied in the amount of $4,000 for the year. If the predetermined overhead rate was $6.00 per direct labor-hour, how many hours were worked during the year? a. 20,000 hours b. 19,333 hours c. 20,667 hours d. 21,000 hours

In the current year, Lennox Manufacturing incurred $120,000 in actual manufacturing overhead costs. The Manufacturing Overhead account showed that overhead was over applied in the amount of $4,000 for the year. If the predetermined overhead rate was $6.00 per direct labor-hour, how many hours were worked during the year? a. 20,000 hours b. 19,333 hours c. 20,667 hours d. 21,000 hours

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 3EA: A company estimated 100,000 direct labor hours and $800,000 in overhead. The actual overhead was...

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