Dragon Fire Hot Sauce Makes Two Types of Hot Sauces-Meek

question 61

Multiple Choice

Dragon Fire Hot Sauce makes two types of hot sauces-meek and mild. Budgeted information for the two flavors appears below: $$\begin{array} { l r r } & \text { Meek } & \text { Mild } \\\text { Sales } & \$ 600,000 & \$ 400,000 \\\text { Direct materials } & \$ 100,000 & \$ 120,000 \\\text { Direct labor cost } & \$ 108,000 & \$ 180,000 \\\text { Labor hourly cost } & \$ 12.00 & \$ 12.00\end{array}$$ The company estimates it will incur $345,600 in overhead costs for the period. Dragon Fire allocates overhead cost to products based on the labor hours worked on each product. What is the overhead application rate to be used when allocating to Meek?

• A) $14.40
• B) $1.20
• C) $3.20
• D) None of these answer choices are correct.

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Definitions:

Consequential Theories

Ethical theories that judge actions based solely on their outcomes or consequences, focusing on the greater good or harm resulting from them.

Moral Rights

Rights concerning the personal and reputational aspects of a work, typically associated with the author's ability to prevent unauthorized changes or to be properly acknowledged.

Universal Rights

Rights that are believed to belong to every person regardless of race, gender, nationality, ethnicity, language, religion, or any other status.

Gender Coercion

The act of forcing individuals to conform to traditional gender roles or behaviors against their will.