Question

Lowden Company has an overhead application rate of 160% and allocates overhead based on direct material cost. During the current period, direct labor cost is $50,000 and direct materials used cost $80,000. Determine the amount of overhead Lowden Company should record in the current period.
A.$ 31,250
B.$ 50,000
C.$ 80,000.
D.$ 128,000.
E.$ 208,000.

Answer

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