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

question 196

Multiple Choice

Use the information below to answer the following question(s) .
Here are selected basic data for Garrett Company:

-If the Garrett Company allocates overhead based on direct labour cost, what is the predetermined manufacturing overhead rate?

• A) 94% of direct labour cost
• B) 125% of direct labour cost
• C) 75% of direct labour cost
• D) 80% of direct labour cost