Here Are Selected Data for Fritzel Company Manufacturing Overhead Is Allocated at 60% of Direct Labor Cost

question 39

Multiple Choice

Here are selected data for Fritzel Company: $$\begin{array} { | l | r | } \hline \text { Cost of goods manufactured } & \$ 390,000 \\\hline \text { Work in process inventary, beginging } & 112,000 \\\hline \text { Work in process inventary, ending } & 92,000 \\\hline \text { Direct materials used } & 75,000 \\\hline\end{array}$$ Manufacturing overhead is allocated at 60% of direct labor cost.
What was the amount of direct labor costs?

• A)$ 95,000
• B)$184,375
• C)$209,375
• D)$295,000

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Definitions:

Design Thinking

is a problem-solving approach that involves empathy, creativity, and rationality to meet user needs and solve complex issues.

Line Extension

The addition of new products to an existing product line of a brand, often in the same product category, to target a wider audience or offer more variety.

Disruptive Innovation

An innovation that significantly alters the way a market or industry functions, often displacing established competitors and reshaping the landscape.

Line Extension

A strategy that involves introducing additional items in the same product category under the same brand name, such as new flavors, forms, colors, added ingredients, or package sizes.