Challenger Factory produces two similar products: regular widgets and deluxe widgets. The total factory overhead budget is $530,800 with 349,700 estimated direct labor hours. Deluxe widget production requires 3 direct labor hours for each unit, and regular widget production requires 6 direct labor hours for each unit. Using a single plantwide factory overhead rate (rounded to the nearest cent) with an allocation base of direct labor hours, the factory overhead that Challenger Factory will allocate to deluxe widget production if budgeted production for the period for deluxe widgets is 40,700 units and actual production of deluxe widgets for the period is 58,000 units. would be O a. $555,997 O b. $264,480 Oc. $463,331 Od. $92,666
Challenger Factory produces two similar products: regular widgets and deluxe widgets. The total factory overhead budget is $530,800 with 349,700 estimated direct labor hours. Deluxe widget production requires 3 direct labor hours for each unit, and regular widget production requires 6 direct labor hours for each unit. Using a single plantwide factory overhead rate (rounded to the nearest cent) with an allocation base of direct labor hours, the factory overhead that Challenger Factory will allocate to deluxe widget production if budgeted production for the period for deluxe widgets is 40,700 units and actual production of deluxe widgets for the period is 58,000 units. would be O a. $555,997 O b. $264,480 Oc. $463,331 Od. $92,666
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Vikram
Transcribed Image Text:Challenger Factory produces two similar products: regular widgets and deluxe widgets. The total factory overhead budget is $530,800 with 349,700 estimated direct labor hours.
Deluxe widget production requires 3 direct labor hours for each unit, and regular widget production requires 6 direct labor hours for each unit.
Using a single plantwide factory overhead rate (rounded to the nearest cent) with an allocation base of direct labor hours, the factory overhead that Challenger Factory will
allocate to deluxe widget production if budgeted production for the period for deluxe widgets is 40,700 units and actual production of deluxe widgets for the period is 58,000 units
would be
a. $555,997
O b. $264,480
C c. $463,331
O d. $92,666
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