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The Work in Process Inventory account of a manufacturing company has a $7,305 debit balance. The company applies overhead using direct labor cost. The cost sheet of the only job still in process shows direct material cost of $2,700 and direct labor cost of $1,500. Therefore, the company's predetermined overhead rate is:   Multiple Choice 48% of direct labor cost. 115% of direct labor cost. 207% of direct labor cost. 56% of direct labor cost. 180% of direct labor cost.

The Work in Process Inventory account of a manufacturing company has a $7,305 debit balance. The company applies overhead using direct labor cost. The cost sheet of the only job still in process shows direct material cost of $2,700 and direct labor cost of $1,500. Therefore, the company's predetermined overhead rate is:   Multiple Choice 48% of direct labor cost. 115% of direct labor cost. 207% of direct labor cost. 56% of direct labor cost. 180% of direct labor cost.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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B MC Qu. 15-99 (Algo) The Work in Process Inventory account...

 

The Work in Process Inventory account of a manufacturing company has a $7,305 debit balance. The company applies overhead using direct labor cost. The cost sheet of the only job still in process shows direct material cost of $2,700 and direct labor cost of $1,500. Therefore, the company's predetermined overhead rate is:

 

Multiple Choice

  • 48% of direct labor cost.

  • 115% of direct labor cost.

  • 207% of direct labor cost.

  • 56% of direct labor cost.

  • 180% of direct labor cost.

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