For Wilton Company, the predetermined overhead rate is 70% of direct labor cost. During the month, $350,000 of factory labor costs are incurred of which $100,000 is indirect labor. Actual overhead incurred was $180,000. The amount of overhead debited to Work in Process Inventory should be:

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The predetermined overhead rate is 70% of direct labor cost. Direct labor cost is $350,000 - $100,000 = $250,000. Therefore, overhead debited to Work in Process Inventory is 70% of $250,000, which is $175,000.

For Wilton Company, the Predetermined Overhead Rate Is 70% of Direct