Down Company uses a predetermined overhead rate based on direct labor hours to apply manufacturing overhead to jobs. Last year Down Company incurred P156,600 in actual manufacturing overhead cost. The Manufacturing Overhead account showed that overhead was underapplied by P12,600 for the year. If the predetermined overhead rate is P6.00 per direct labor hour, how many hours did the company work during the year? 26,000 hours 24,000 hours 28,200 hours 25.000 hour

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Down Company uses a predetermined overhead rate based on direct labor hours to apply
manufacturing overhead to jobs. Last year Down Company incurred P156,600 in actual
manufacturing overhead cost. The Manufacturing Overhead account showed that overhead was
underapplied by P12,600 for the year. If the predetermined overhead rate is P6.00 per direct labor
hour, how many hours did the company work during the year?
26,000 hours
24,000 hours
28,200 hours
25.000 hour

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