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    Predetermined overhead rate

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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

    © BrainMass Inc. brainmass.com June 3, 2020, 9:49 pm ad1c9bdddf
    https://brainmass.com/business/accounting/predetermined-overhead-rate-201227

    Solution Summary

    The solutions answers the question(s) below.

    $2.19

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