Lowden Company Has a Predetermined Overhead Rate of 160% and Allocates

question 52

Multiple Choice

Lowden Company has a predetermined overhead rate of 160% and allocates overhead based on direct material cost.During the current period,direct labor cost is $50,000 and direct materials cost is $80,000.How much overhead cost should Lowden Company should apply in the current period?

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

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Definitions:

Invested

To have allocated resources, such as money, toward something with the expectation of generating income or profit.

Deposited

The act of placing money or another form of value into an account.

Interest

The cost of borrowing money or the payment received for deposit funds, calculated as a percentage of the principal.

Investment

The allocation of money into financial assets, real estate, or other ventures with the expectation of obtaining additional income or profit.