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

---

Definitions:

Method of Residues

A method of scientific reasoning where one deducts from a complex set of phenomena the parts already explained, in order to isolate the remainder for new analysis.

Necessary Condition

A prerequisite that must be present for a certain effect or outcome to occur.

Sufficient Condition

A condition that, if satisfied, guarantees the occurrence or truth of another condition but isn't necessarily required for the latter's occurrence.

Method of Difference

A scientific research method used to identify the cause-effect relationship between variables by changing one variable at a time while keeping others constant.