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Darrow Corporation uses a predetermined overhead rate based on direct labor-hours to apply ...

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Darrow Corporation uses a predetermined overhead rate based on direct labor-hours to apply ...

Darrow Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Last year, the Corporation worked 10,000 direct labor-hours and incurred $80,000 of actual manufacturing overhead cost. If overhead was underapplied by $2,000, the predetermined overhead rate for the Corporation for the year must have been:

▸ $7.80 per direct labor-hour

▸ $8.00 per direct labor-hour

▸ $8.20 per direct labor-hour

▸ $8.40 per direct labor-hour

Textbook

Introduction to Managerial Accounting: Brewer Edition: 9e

Edition: 9^th

Authors: Brewer, Garrison, Noreen

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