Answer the Following Questions Using the Information Below

question 71

Multiple Choice

Answer the following questions using the information below:
Fey Corporation manufactures two models of office chairs, a standard and a deluxe model. The following activity and cost information has been compiled:

-Assume a traditional costing system applies the $120,000 of overhead costs based on direct labor hours. What is the total amount of overhead costs assigned to the deluxe model?

• A)$49,600
• B)$70,400
• C)$75,000
• D)$45,000

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Definitions:

Specialty Spice Shop

A retail store dedicated to selling a wide range of spices, often including exotic or hard-to-find varieties.

Potential Customers

Individuals or entities that are likely to be interested in an organization's products or services but have not yet made a purchase.

Packet

A small container or envelope designed to hold or transport items, or a formatted unit of data for transmission.

Loyalty Programs

Sales promotions that allow consumers to accumulate points or other benefits for doing business with the same company.