Question

CWN Company uses a job order costing system and last period incurred $80,000 of actual overhead and $100,000 of direct labor. CWN estimates that its overhead next period will be $75,000. It also expects to incur $100,000 of direct labor. If CWN bases applied overhead on direct labor cost, its predetermined overhead rate for the next period should be:
A.75%.
B.80%.
C.107%.
D.125%.
E.133%.

Answer

This answer is hidden. It contains 37 characters.