Forsyth,Inc The Number of Direct Labor Hours Worked During the Period

question 168

Multiple Choice

Forsyth,Inc.uses estimated direct labor hours of 245,000 and estimated manufacturing overhead costs of $1,200,000 in establishing its predetermined overhead allocation rate for the year.Actual results showed the following: $$\begin{array} { | l | l | } \hline \text { Actual manufacturing overhead } & \$ 800,000 \\\hline \text { Allocated manufacturing overhead } & \$ 825,000 \\\hline\end{array}$$ The number of direct labor hours worked during the period was ________.(Round any intermediate calculations to two decimal places,and your final answer to the nearest whole number. )

• A)245,000 hours
• B)168,367 hours
• C)163,265 hours
• D)237,575 hours

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Definitions:

Financial Instruments

Contracts that give rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

Bretton Woods Accord

An agreement reached in 1944 that established a new global financial system including fixed exchange rates and created major entities like the International Monetary Fund and the World Bank.

Exchange Rate

The price of one country’s currency expressed in another country’s currency.

Currency Swap

A financial agreement to exchange principal and/or interest payments of a loan in one currency for equivalent amounts in another currency.