ABD Co. uses a job order cost accounting system. At year-end the Work in Process Inventory controlling account showed a debit balance of $65,000. For the two jobs in process at year-end, one showed $8,000 in direct materials and $6,000 in direct labor. The job cost sheet for the second job showed $12,000 in direct materials and $9,000 in direct labor. If the company is using a predetermined overhead application rate based on direct labor cost, the rate is:
a. 50%.
b. 100%.
c. 150%.
d. 200%.