Dowan Company Uses a Predetermined Overhead Rate Based on Direct

Dowan Company uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Last year Dowan Company incurred $156,600 in actual manufacturing overhead cost. Overhead was underapplied by $12,600 for the year. If the predetermined overhead rate is $6.00 per direct labor-hour, how many hours did the company work during the year?

A) 26,000 hours
B) 24,000 hours
C) 28,200 hours
D) 25,000 hours