CWN Company Uses a Job Order Costing System and Last

Multiple Choice

CWN Company uses a job order costing system and last period incurred $80,000 of actual overhead and $100,000 of direct labor.CWN estimates that its overhead next period will be $75,000.It also expects to incur $100,000 of direct labor cost.If CWN bases applied overhead on direct labor cost,its predetermined overhead rate for the next period should be:

A) 75%.
B) 80%.
C) 107%.
D) 125%.
E) 133%.