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The Goods in Process Inventory account of a manufacturing company that uses an overhead rate based on direct labor cost has a $6,048 debit balance

The Goods in Process Inventory account of a manufacturing company that uses an overhead rate based on direct labor cost has a $6,048 debit balance after all posting is completed. The cost sheet of the one job still in process shows direct material cost of $2,400 and direct labor cost of $1,200. Therefore, the company's overhead application rate is: 50%. 49%. 204%. 102%. 200%.

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