Quick Step Company Is Debating the Use of Direct Labor

question 219

Multiple Choice

Quick Step 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 Quick Step Company uses direct labor hours as the allocation base, what would the allocated manufacturing overhead be for the year? (Round intermediary calculations to the nearest cent.)

• A)$425,700
• B)$350,000
• C)$394,570
• D)$324,033

---

Definitions:

Microsoft Office 2003

A suite of productivity software released by Microsoft, including applications such as Word, Excel, and PowerPoint, used for document creation, calculation, and presentation.

African American

A term referring to Americans with ancestry from the black racial groups of Africa.

Probability

The numerical evaluation, situated between 0 and 1, estimating the probability of an event's occurrence.

Sample Space

The set of all possible outcomes in a probability experiment.