The Work in Process Account of Village Manufacturing Shows a Balance

Multiple Choice

The Work in Process account of Village Manufacturing shows a balance of $42 000 at the end of an accounting period.The job cost orders of the two uncompleted jobs show charges of $15 000 and $7000 for materials used and charges of $10 000 and $5000 for direct labour used.From this information it appears that the company is using a predetermined overhead rate as a percentage of direct labour costs,of:

A) 13.5%
B) 50.0%
C) 33.3%
D) 300%