In the current year, Westbrook Manufacturing incurred $240,000 in actual manufacturing overhead cost. The Manufacturing Overhead account showed that overhead was overapplied in the amount of $12,000 for the year. If the predetermined overhead rate was $10.00 per direct labor-hour, how many hours were worked during the year? a. 25,200 hours b. 24,000 hours c. 23,800 hours d. 25,500 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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In the current year, Westbrook Manufacturing incurred $240,000 in actual
manufacturing overhead cost. The Manufacturing Overhead account
showed that overhead was overapplied in the amount of $12,000 for the year.
If the predetermined overhead rate was $10.00 per direct labor-hour, how
many hours were worked during the year?
a. 25,200 hours
b. 24,000 hours
c. 23,800 hours
d. 25,500 hours
Transcribed Image Text:In the current year, Westbrook Manufacturing incurred $240,000 in actual manufacturing overhead cost. The Manufacturing Overhead account showed that overhead was overapplied in the amount of $12,000 for the year. If the predetermined overhead rate was $10.00 per direct labor-hour, how many hours were worked during the year? a. 25,200 hours b. 24,000 hours c. 23,800 hours d. 25,500 hours
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