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Deffense [45]
2 years ago
5

Lowden Company has a predetermined overhead rate of 160% and allocates overhead based on direct material cost. During the curren

t 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?
Business
1 answer:
sleet_krkn [62]2 years ago
3 0

Based on the direct materials cost and the predetermined overhead rate, Lowden company should apply an oevrhead cost of $128,000.

<h3>How much overhead should be applied?</h3>

This can be found as:

= Direct materials x Predetermined overhead rate

Solving gives:

= 80,000 x 160%

= $128,000

In conclusion, the overhead cost to be applied is $128,000.

Find out more on predetermined overhead rates at brainly.com/question/26372929.

#SPJ1

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Holding everything else constant, a decrease in the price of bicycles will result in a. a decrease in the quantity of bicycles d
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