BrightGlow Lighting Co. manufactures two products: wall sconces and floor lamps. It operates two separate departments: Assembly and Finishing. -The Assembly Department has a budgeted overhead of $600,000 and uses 400,000 direct labor hours. -The Finishing Department has a budgeted overhead of $450,000 and uses 90,000 direct labor hours. If the budget estimates that a wall sconce requires 3 hours of assembly and 2 hours of finishing, how much factory overhead will Bright Glow Lighting Co. allocate to each unit of wall sconce using the multiple production department factory overhead rate method with an allocation base of direct labor hours? a) $7.75 b) $14.50 c) $9.25 d) $10.00

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter8: Budgeting
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Please need answer the general accounting question

BrightGlow Lighting Co. manufactures two products: wall sconces and floor
lamps. It operates two separate departments: Assembly and Finishing.
-The Assembly Department has a budgeted overhead of $600,000 and uses
400,000 direct labor hours.
-The Finishing Department has a budgeted overhead of $450,000 and uses
90,000 direct labor hours.
If the budget estimates that a wall sconce requires 3 hours of assembly and 2
hours of finishing, how much factory overhead will Bright Glow Lighting Co.
allocate to each unit of wall sconce using the multiple production department
factory overhead rate method with an allocation base of direct labor hours?
a) $7.75
b) $14.50
c) $9.25
d) $10.00
Transcribed Image Text:BrightGlow Lighting Co. manufactures two products: wall sconces and floor lamps. It operates two separate departments: Assembly and Finishing. -The Assembly Department has a budgeted overhead of $600,000 and uses 400,000 direct labor hours. -The Finishing Department has a budgeted overhead of $450,000 and uses 90,000 direct labor hours. If the budget estimates that a wall sconce requires 3 hours of assembly and 2 hours of finishing, how much factory overhead will Bright Glow Lighting Co. allocate to each unit of wall sconce using the multiple production department factory overhead rate method with an allocation base of direct labor hours? a) $7.75 b) $14.50 c) $9.25 d) $10.00
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