Answer:
Amount of overhead debited to Work in Process Inventory is $364,000
Explanation:
Direct labor cost = Total labor cost - Indirect labor cost
Direct labor cost = $720,000 - $200,000 = $520,000
Overhead debited to Work in Process Inventory= 70% * Direct labor cost
=70% * $520,000
=$364,000
Improving quality can increase firm value because firms can increase costs, firms can increase activities, and firms can increase customer demand.
<h3>How does the firm's worth increase when quality improves?</h3>
The value of the firm increases as the quality of the firm increases, as the quality of the firm increased, the customers demand more of the goods of the firm because there is the increment in quality of products also.
The value of the firm will automatically increase as the goodwill increased, and the firm will also increase the activities because the goodwill of the firm increased and the demand for the firm's products also increased.
Therefore, option D is correct.
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