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Quick Step Company Is Debating the Use of Direct Labor

Question 309

Multiple Choice

Quick Step Company is debating the use of direct labor cost or direct labor hours as the cost allocation base for allocating manufacturing overhead. The following information is available for the most recent year: Quick Step Company is debating the use of direct labor cost or direct labor hours as the cost allocation base for allocating manufacturing overhead. The following information is available for the most recent year: If Quick Step Company uses direct labor hours as the allocation base, what would the predetermined manufacturing overhead rate be? A) $1.50 per direct labor hour B) $1.70 per direct labor hour C) $1.40 per direct labor hour D) $1.83 per direct labor hour If Quick Step Company uses direct labor hours as the allocation base, what would the predetermined manufacturing overhead rate be?


A) $1.50 per direct labor hour
B) $1.70 per direct labor hour
C) $1.40 per direct labor hour
D) $1.83 per direct labor hour

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