For the current year, Paxman Company incurred $150,000 in actual manufacturing overhead cost. The Manufacturing Overhead account showed that overhead was overapplied in the amount of $6,000 for the year. If the predetermined overhead rate was $8.00 per direct labor-hour, how many hours were worked during the year?

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The predetermined overhead rate is $8.00 per direct labor-hour. The actual manufacturing overhead cost incurred was $150,000. The overhead was overapplied by $6,000. This means that the actual overhead cost was $144,000 ($150,000 - $6,000). To calculate the number of hours worked, we divide the actual overhead cost by the predetermined overhead rate: $144,000 / $8.00 = 18,000 hours.

For the Current Year, Paxman Company Incurred $150,000 in Actual