Felton Quality Productions Company Has Provided the Following Information for the Year

question 41

Multiple Choice

Felton Quality Productions Company has provided the following information for the year 2012:
$$\begin{array} { l l } \text { Actual manufacturing overhead costs incurred } & \$ 89,770 \\\text { Manufacturing overhead costs allocated to production } & \$ 95,200 \\\text { Actual direct materials cost } & \$ 224,000 \\\text { Actual direct labor cost } & \$ 93,750 \\\text { Actual direct labor hours } & 18,500 \text { direct labor hours } \\\text { Actual machine hours } & 56,000 \text { machine hours }\end{array}$$
Based on the above information, what was Felton's allocation rate? (Hint: for this type of problem, the "trial and error" method may be used.)

• A) $1.70 per machine hour
• B) 52% of direct labor cost
• C) 180% of direct materials cost
• D) $24.80 per direct labor hour

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Definitions:

Neolithic

The final stage of cultural evolution or technological development among prehistoric humans, characterized by the transition from nomadic hunting and gathering to settled farming and community living.

Biological Traits

Characteristics or features of organisms that can be observed and are often determined by genetic inheritance.

Gene Flow

The transfer of genetic material from one population to another, enhancing genetic diversity within populations.

Genetic Drift

A mechanism of evolution that results in a change in the frequency of alleles in a population due to random sampling of organisms.