Nutley Company uses a job order cost system and last period incurred $70,000 of overhead and $100,000 of direct labor.Nutley estimates that its overhead next period will be $65,000.The company also expects to incur $100,000 of direct labor.If Nutley bases its overhead applied on direct labor cost,what should be the predetermined overhead rate for the next period?

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The Answer of Nutley Company uses a job order cost system and last period incurred $70,000 of overhead and $100,000 of direct labor.Nutley estimates that its overhead next period will be $65,000.The company also expects to incur $100,000 of direct labor.If Nutley bases its overhead applied on direct labor cost,what should be the predetermined overhead rate for the next period?

Nutley Company Uses a Job Order Cost System and Last