The Work in Process Account of Green Manufacturing Shows a Balance

Multiple Choice

The work in process account of Green 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%.