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Darrow Company uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead...

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Accounting

Darrow Company uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Last year, the company worked 24,000 direct labor-hours and incurred $144,000 of actual manufacturing overhead cost. If overhead was underapplied by $9,360, the predetermined overhead rate for the company for the year must have been:

$5.61

$6.00

$6.39

$6.78

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