The Work in Process Inventory Account of a Manufacturing Company

question 41

Multiple Choice

The Work in Process inventory account of a manufacturing company shows a balance of $2,400 at the end of an accounting period.The job cost sheets of two uncompleted jobs show charges of $400 and $200 for direct materials and charges of $300 and $500 for direct labour.From this information,what predetermined overhead rate,as a percentage of direct labour costs,does the company appear to be using?

• A) 80%.
• B) 125%.
• C) 240%.
• D) 300%.

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