Use the Information Below to Answer the Following Question(s)

question 353

Multiple Choice

Use the information below to answer the following question(s) .
Sable Company is debating the use of direct labour cost or direct labour hours as the cost allocation base for allocating manufacturing overhead. The following information is available for the most recent year:

-If Sable Company uses direct labour hours as the allocation base, what would the allocated manufacturing overhead be for the year?

• A) $400,000
• B) $350,000
• C) $343,000
• D) $392,000

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Definitions:

Perfection by Possession

A legal principle that secures a creditor's interest in a debtor's collateral upon taking possession of it.

Secured Party

A lender or creditor who has a security interest in collateral owned by the debtor, which gives them a legal right to the property if the debtor defaults.

Secured Perfected Creditor

Refers to a creditor who has taken the necessary legal steps to secure a right in the borrower’s collateral, ensuring priority over claims made by other creditors.

After-Acquired Property

Property acquired by a debtor after an agreement or court order, which may become subject to claim by creditors.