Chapter A, Problem A.6E

Benton Manufacturing uses a job-order costing system and last period incurred $95,000 of actual overhead and $120,000 of direct labor. Benton estimates that its overhead next period will be $88,000 and expects to incur $120,000 of direct labor. If Benton bases applied overhead on direct labor cost, what should be the predetermined overhead rate for the next period? a) 73.33% b) 88% c) 106% d) 125% e) 138%

I need help with this problem and accounting question

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