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Darrow Company uses a predetermined overhead rate based on direct labour hours to apply manufacturing overhead to jobs. Last year, the company worked 10,000 direct labour hours and incurred $80,000 of actual manufacturing overhead costs. If overhead was underapplied by $2,000, the predetermined overhead rate for the company must have been: a) $7.80 b) $8.00 c) $8.20 d) $8.40.

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Darrow Company uses a predetermined overhead rate based on direct labour hours to apply manufacturing overhead to jobs. Last year, the company worked 10,000 direct labour hours and incurred $80,000 of actual manufacturing overhead costs. If overhead was underapplied by $2,000, the predetermined overhead rate for the company must have been: a) $7.80 b) $8.00 c) $8.20 d) $8.40

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