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

question 82

Multiple Choice

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

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

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Definitions:

Promissory Estoppel

A doctrine that applies when a promisor makes a clear and definite promise on which the promisee justifiably relies. Such a promise is binding if justice will be better served by the enforcement of the promise.

Promisor

An individual or entity that makes a promise to perform an act or fulfill an obligation as specified in a contract.

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Acquired or secured something, typically through purchase, request, or effort.

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