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Lowden Company has an overhead application rate of 159% and allocates overhead based on direct material cost . During the current period, direct labor cost

Lowden Company has an overhead application rate of 159% and allocates overhead based ondirect material cost. During the current period, direct labor cost is $56,000 and direct materials used cost $86,000. Determine the amount of overhead Lowden Company should record in the current period.

Multiple Choice

  • $136,740.
  • $54,088.
  • $86,000.
  • $35,220.
  • $56,000.

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