Use the Information Below to Answer the Following Question(s)

question 261

Multiple Choice

Use the information below to answer the following question(s) .
Crabtree Ornaments Company uses job costing. Crabtree Ornaments Company has two departments, Trimming and Finishing. Manufacturing overhead is allocated based on direct labour cost in the Trimming Department and direct labour hours in the Finishing Department. The following additional information is available:

Actual data for completed Job No. 650 is as follows:

-What is the predetermined manufacturing overhead rate for the Trimming Department at Crabtree Ornaments Company?

• A) 150% of direct labour cost
• B) 67% of direct labour cost
• C) 104% of direct labour cost
• D) 100% of direct labour cost

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