Predetermined overhead rate for the company for the year


Darrow Company uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Last year, the company 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 company for the year must have been ?

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Accounting Basics: Predetermined overhead rate for the company for the year
Reference No:- TGS041362

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