Forsyth Company Uses Estimated Direct Labor Hours of 175,000 and Estimated

question 8

Multiple Choice

Forsyth Company uses estimated direct labor hours of 175,000 and estimated manufacturing overhead costs of $350,000 in establishing its 2014 predetermined overhead allocation rate. Actual results showed: The number of direct labor hours worked during the period was:

• A)175,000 hours.
• B)160,000 hours.
• C)173,250 hours.
• D)191,406 hours.

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Definitions:

Variability Increase

A situation where the diversity or spread of data points widens, indicating less consistency and predictability in the process or system observed.

Cost Reduction

Strategies and actions taken to lower the expenses involved in operating a business or producing goods and services without compromising quality or performance.

Incoming Goods

Refers to materials or products that are received by a warehouse or a production facility from suppliers.

JIT Partnership Goals

Objectives aimed at implementing Just-In-Time manufacturing principles, focusing on reducing inventory and waste while improving efficiency and responsiveness.