Canmore Company has the following data pertaining to 2016: Factory overhead rate is 125 percent of direct labor costs.
What is the ending materials inventory balance for Canmore in 2016?
A) $50,000
B) $62,500
C) $12,500
D) $37,500

Question

Canmore Company has the following data pertaining to 2016:  Factory overhead rate is 125 percent of direct labor costs.
What is the ending materials inventory balance for Canmore in 2016?
A) $50,000 
B) $62,500 
C) $12,500 
D) $37,500

Quizplus · Accepted Answer

The question does not provide any information about materials inventory or direct labor costs, so we cannot use the given overhead rate to calculate the materials inventory balance. Therefore, the correct answer cannot be determined from the information provided.

Canmore Company Has the Following Data Pertaining to 2016