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

---

Definitions:

Prevailing Reinvestment Rate

The current market interest rate at which cash flows from an investment can be reinvested.

Compound Yield

The rate of return on an investment or loan, considering the effect of compounding interest.

Coupon Bond

A debt security that pays the investor periodic interest payments called coupons and returns the principal at the end of the maturity.

Par Value

Par Value is the face value of a bond or stock as stated by the issuer, which might not reflect its market value.