Item13

3.63points

Time Remaining 10 minutes 9 seconds

00:10:09

Item 13

Time Remaining 10 minutes 9 seconds

00:10:09

The Work in Process Inventory account of a manufacturing company has a $4,400 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 $2,000 and direct labor cost of $800. Therefore, the company's predetermined overhead rate is:

Multiple Choice

40% of direct labor cost.

50% of direct labor cost.

80% of direct labor cost.

300% of direct labor cost.

200% of direct labor cost.