jaynacroisant3316 jaynacroisant3316

30-06-2021
Business

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MC Qu. 114 Lowden Company has an overhead application... Lowden Company has an overhead application rate of 155% and allocates overhead based on direct material cost. During the current period, direct labor cost is $60,000 and direct materials used cost $90,000. Determine the amount of overhead Lowden Company should record in the current period.

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andromache andromache

02-07-2021

Answer:

the overhead amount recorded is $139,500

Explanation:

The computation of the overhead amount recorded is shown below:

= Overhead application rate × direct material cost

= 155% × $90,000

= $139,500

Hence, the overhead amount recorded is $139,500

We simply applied the above formula so that the correct value could come

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