Fulton Corporation Uses Estimated Direct Labour Hours of 210,000 and Estimated

question 72

Multiple Choice

Fulton Corporation uses estimated direct labour hours of 210,000 and estimated manufacturing overhead costs of $840,000 in establishing manufacturing overhead rates. Actual manufacturing overhead was $960,000, and allocated manufacturing overhead was $980,000. What were the number of actual direct hours worked?

• A) 214,375
• B) 245,000
• C) 183,750
• D) 210,000

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Definitions:

Pounds

A unit of mass commonly used in the British imperial and United States customary systems, equivalent to 0.453592 kilograms.

Marking to Market

The practice of updating the value of a financial instrument to reflect its current market value.

Delivery

The process of transporting goods from one location to another or the act of handing over possession or control.

Contract Price

The agreed-upon price for goods or services set forth in a contractual agreement.