Question: 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%