1. Business
2. Accounting
3. 201227

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Question 7:

Darrow Company uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Last year, the company worked 9,900 direct labor-hours and incurred $89,400 of actual manufacturing overhead cost. If overhead was underapplied by $2,100, the predetermined overhead rate for the company for the year must have been:

$8.32

$8.82

$9.1

$9.87