Federer Company Is Debating the Use of Direct Labor Cost

question 165

Multiple Choice

Federer Company is debating the use of direct labor cost or direct labor hours as the cost allocation base for allocating manufacturing overhead.The following information is available for the most recent year:

If Federer Company uses direct labor cost as the allocation base,what would the allocated manufacturing overhead be for the year?

• A)$701,509
• B)$325,500
• C)$395,250
• D)$425,000

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Definitions:

Environmental Hazards

Potentially dangerous conditions or substances in the environment that can cause harm to humans, animals, or the ecosystem, ranging from chemical pollutants to natural disasters.

EPA Administrator

The chief executive officer of the Environmental Protection Agency, responsible for enforcing the nation's environmental laws.

Manufacture

Manufacture involves the process of converting raw materials into finished goods through various techniques and processes, typically involving labor and machinery.

Distribution

The act of presenting a product or service for utilization or consumption by a consumer or business entity.