а. 10% d. 91% b. 110% е. 117% с. 86%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
A company uses direct labor costs to apply
Transcribed Image Text:а. 10%
d. 91%
b. 110%
е. 117%
с. 86%
Expert Solution
Step 1 Basic Information
The question is multiple choice question.The question is related to Cost Accounting and concept of overheads. A company uses direct labor costs to apply overhead. Its production costs for the period are:
Direct materials $ 45,000
Direct labor $ 35,000
Overhead applied $ 38,500.
Required
What is its predetermined overhead rate?
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