Allocates overhead based on direct material cost

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Lowden Company has an overhead application rate of 160% and allocates overhead based on direct material cost. During the current period, direct labor cost is $50,000 and direct materials used cost $80,000. Determine the amount of overhead Lowden Company should record in the current period.

A) $31,250 B)$50,000 C)$80,000 D)$128,000 E)$208,000

Reference no: EM131356650

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