Problem:
Simone uses a predetermined overhead application rate of $8 per direct labor hour. A review of the company's accounting records for the year just ended discovered the following:
- Underapplied manufacturing overhead: $7,200
- Actual manufacturing overhead: $392,000
- Budgeted labor hours: 50,000
Simone's actual labor hours worked totaled:
A. $48,100
B. $49,100
C. $49,900
D. $50,900
E. cannot be determined based on the information presented
Note: Please show how to work it out.