Lowden Company has an overhead application rate of 158% and allocates overhead based on direct material cost

Accounting Apr 20, 2021

Lowden Company has an overhead application rate of 158% and allocates overhead based on direct material cost. During the current period, direct labor cost is $68,000 and direct materials used cost $72,000. Determine the amount of overhead Lowden Company should record in the current period.

$45,570.

$113,760.

$43,038.

$68,000.

$72,000.

Expert Solution

Answer:

$113,760.
Statement showing computations
Particulars	Amount
direct materials used cost	72,000.00
overhead application rate based on DM Cost	158%
amount of overhead Lowden Company should record = 72,000*158%	113,760.00

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