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problem: BCL Company uses a job order cost accounting system and last period incurred $80,000 of overhead & $100,000 of direct labor. BCL estimates that its overhead next period will be $75,000. It also expects to incur $100,000 of direct labor. If BCL bases applied overhead on direct labor cost, their overhead application rate for the next period should be:

[A] 75%

[B] 125%

[C] 80%

[D] 107%

[E] 133%

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  • Reference No.:- M921870

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