The Goods in Process Inventory Account of a Manufacturing Company

question 69

Multiple Choice

The Goods in Process Inventory account of a manufacturing company that uses an overhead rate based on direct labor cost has a $7,750 debit balance after all posting is completed.The cost sheet of the one job still in process shows direct material cost of $6,000 and direct labor cost of $1,000.Therefore,the company's overhead application rate is:

• A) 10.7%
• B) 75.0%
• C) 133.0%
• D) 90.3%
• E) 111.0%

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Definitions:

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The information and experiences that are directed towards an end-user or audience.

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