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.