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

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