Answered

IDNLearn.com makes it easy to find accurate answers to your questions. Discover in-depth and reliable answers to all your questions from our knowledgeable community members who are always ready to assist.

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?

Sagot :

Parrainidn

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

How much overhead should be applied?

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 https://brainly.com/question/26372929.

#SPJ1

We appreciate every question and answer you provide. Keep engaging and finding the best solutions. This community is the perfect place to learn and grow together. IDNLearn.com is committed to providing accurate answers. Thanks for stopping by, and see you next time for more solutions.