Forsyth Company Uses Estimated Direct Labor Hours of 175,000 and Estimated

question 93

Multiple Choice

Forsyth Company uses estimated direct labor hours of 175,000 and estimated manufacturing overhead costs of $350,000 in establishing its 2014 predetermined overhead allocation rate. Actual results showed: $$\begin{array} { | l | l | } \hline \text { Actual manufacturing overhead } & \$ 346,500 \\\hline \text { Allocated manufacturing overhead } & \$ 320,000 \\\hline\end{array}$$ The number of direct labor hours worked during the period was:

• A) 175,000 hours.
• B) 160,000 hours.
• C) 173,250 hours.
• D) 191,406 hours.

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Definitions:

Toxemia

A medical condition where toxins enter the bloodstream, often leading to serious health issues or poisoning.

Colitis

Inflammation of the colon.

Lacteal

Small lymphatic vessels located in the villi of the small intestine, responsible for absorbing dietary fats.

Intestinal Lymphatic Capillary

Tiny, lymph-filled capillaries within the intestinal villi that absorb dietary fats and fat-soluble vitamins.