Lowden Company Has an Overhead Application Rate of 160% and Allocates

question 171

Multiple Choice

Lowden Company has an overhead application rate of 160% and allocates overhead based on direct material cost. During the current period, direct labor cost is $50,000 and direct materials used cost $80,000. Determine the amount of overhead Lowden Company should record in the current period.

• A) $128,000.
• B) $80,000.
• C) $50,000.
• D) $31,250.
• E) $208,000.

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