Blackwelder Factory produces two similar products: small table lamps and desk lamps. The total factory overhead budget is $615,000 with 478,000 estimated direct labor hours. It is further estimated that small table lamp production will require 261,000 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 183,000 would be a.$518,641 b.$877,131 c.$236,070 d.$739,700

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Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit.  Overhead expenses depend upon the nature of the business operations.