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14 Farrina Manufacturing uses a predetermined overhead application rate of $8 per direct labor hour. A review of the company
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Answer #1

Solution:

Overhead applied = Actual manufacturing overhead - Underapplied overhead

= $392,000 - $7,200 = $384,800

Actual labor hours = Overhead applied / Predetermined overhead rate = $384,800 / $8 = 48100 direct labor hours

Hence first option is correct.

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