Business, 17.08.2020 17:01 kamrulh278
The Work in Process Inventory account of a manufacturing company that uses an overhead rate based on direct labor cost has a $6,884 debit balance after all posting is completed. The cost sheet of the one job still in process shows direct material cost of $2,600 and direct labor cost of $1,400. Therefore, the company's overhead application rate is:
a. 111% of direct labor cost.
b. 186% of direct labor cost.
c. 206% of direct labor cost.
d. 49% of direct labor cost.
e. 54% of direct labor cost.
Answers: 3
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