Blackwelder Factory produces two similar products: small table lamps and desk lamps. The total factory overhead budget is $510,000 with 453,000 estimated direct labor hours. It is further estimated that small table lamp production will require 291,000 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 desk lamp production if actual direct labor hours for the period for desk lamps is 190,000 would be Oa. $214,700 Ob. $781,105 Oc. $598,148 Od. $295,300
Blackwelder Factory produces two similar products: small table lamps and desk lamps. The total factory overhead budget is $510,000 with 453,000 estimated direct labor hours. It is further estimated that small table lamp production will require 291,000 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 desk lamp production if actual direct labor hours for the period for desk lamps is 190,000 would be Oa. $214,700 Ob. $781,105 Oc. $598,148 Od. $295,300
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 $510,000 with 453,000 estimated direct labor hours. It is further estimated that small table lamp production will require 291,000 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 desk lamp production if actual direct labor hours for the period for desk lamps is 190,000 would be
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