Work-in-Process Inventory for Wendall Productions has a balance of $2,600 at the end of the accounting period. The cost summaries for the uncompleted jobs showed direct materials of $1,200 and direct labor of $800. Wendall applies manufacturing overhead on the basis of direct labor cost. The company's predetermined overhead rate is:

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The total Work-in-Process Inventory is $2,600, which includes direct materials ($1,200), direct labor ($800), and manufacturing overhead. The overhead is applied based on direct labor cost. Let the predetermined overhead rate be x. Then, $1,200 (materials) + $800 (labor) + $800x (overhead) = $2,600. Solving for x gives x = 0.75.

Work-In-Process Inventory for Wendall Productions Has a Balance of $2,600