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Blackwelder Factory produces two similar products: small table lamps and desk lamps. The total factory overhead budget is $560,000 with 469,000 estimated direct labor hours. It is further estimated that small table lamp production will require 250,000 direct labor hours, and desk lamp production will need 125,000 direct labor hours. Using a single plantwide factory overhead rate with an allocation base of direct labor hours, the factory overhead that Blackwelder Factory will allocate to small table lamp production if actual direct labor hours for the period for small table lamp production is 206,000 would be

Blackwelder Factory produces two similar products: small table lamps and desk lamps. The total factory overhead budget is $560,000 with 469,000 estimated direct labor hours. It is further estimated that small table lamp production will require 250,000 direct labor hours, and desk lamp production will need 125,000 direct labor hours. Using a single plantwide factory overhead rate with an allocation base of direct labor hours, the factory overhead that Blackwelder Factory will allocate to small table lamp production if actual direct labor hours for the period for small table lamp production is 206,000 would be

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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    Blackwelder Factory produces two similar products: small table lamps and desk lamps. The total factory overhead budget is $560,000 with 469,000 estimated direct labor hours. It is further estimated that small table lamp production will require 250,000 direct labor hours, and desk lamp production will need 125,000 direct labor hours.

    Using a single plantwide factory overhead rate with an allocation base of direct labor hours, the factory overhead that Blackwelder Factory will allocate to small table lamp production if actual direct labor hours for the period for small table lamp production is 206,000 would be

    a.$679,612
    b.$245,140
    c.$526,758
    d.$639,269
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