Nadal Company Is Debating the Use of Direct Labor Cost

question 189

Multiple Choice

Nadal 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 Nadal Company uses direct labor hours as the allocation base,what would the predetermined manufacturing overhead rate be?

• A)$1.51 per direct labor hour
• B)$1.40 per direct labor hour
• C)$1.60 per direct labor hour
• D)$1.72 per direct labor hour

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Definitions:

Transpiration

The pathway that water takes, moving from the roots to microscopic pores located on the leaf undersides, where it vaporizes and escapes into the surrounding air.

Mycorrhiza

Mutually beneficial partnership between a fungus and a plant root.

Mutual Beneficial Association

A relationship between two or more organisms where all parties involved gain benefits, often seen in symbiotic relationships.

O Horizon

The topmost layer of soil, primarily composed of organic matter such as decomposed leaves, twigs, and other plant material.