Rams Company Had the Following Information The Budgeted Factory-Overhead Rate Using Direct-Labor Costs as the Cost

question 38

Multiple Choice

Rams Company had the following information: $$\begin{array} { l r } \text { Budgeted factory overhead } & \$ 90,000 \\\text { Actual factory overhead } & \$ 107,000 \\\text { Budgeted: Direct-labor costs } & \$ 100,000 \\\text { Actual: Direct-labor costs } & \$ 107,000\end{array}$$ The budgeted factory-overhead rate using direct-labor costs as the cost driver is _____.

• A)$.81
• B)$.90
• C)$1.00
• D)$1.05