Akki Fabrication uses a predetermined manufacturing overhead rate of $10 per direct labor hour. A review of their year end accounting records revealed the following:
Over-applied manufacturing overhead before adjustment = $9,200
Actual manufacturing overhead = $400,000
Budgeted direct labor hours = 53,000
Akki Fabrication's actual direct labor hours worked totaled:
a. 39,080
b. 48,100
c. None of the other answers are correct
d. 40,920
e. 45.920
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