[The Following Information Applies to the Questions Displayed Below

question 41

Multiple Choice

[The following information applies to the questions displayed below.]
Capri Boat Corporation uses a job order cost system and applies overhead based on a percentage of direct labor cost.Cost flows through the Work in Process Inventory account during March are given below:
Only Job #007 was still in process at the end of March and this job had been charged with $40,000 in direct materials cost.
-The predetermined overhead application rate at Capri Boat is what percentage of direct labor costs?

• A)38%
• B)62%
• C)260%
• D)580%

---

Definitions:

Foreign Exchange Markets

Global decentralized or over-the-counter markets for the trading of currencies, enabling currency conversion for international trade and investments.

U.S. Inflation

U.S. Inflation is the rate at which the general level of prices for goods and services is rising, eroding purchasing power, in the United States over time.

International Gold Standard

A monetary system in which the value of a country's currency is directly linked to a specified amount of gold, facilitating international trade and investment by establishing exchange rates based on gold parity.

Exchange Rates

The value of one currency for the purpose of conversion to another.