Challenger Factory produces two similar products: regular widgets and deluxe widgets. The total factory overhead budget is $654,500 with 397,100 estimated direct labor hours. Deluxe widget production requires 4 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 verhead that Challenger Factory will allocate to deluxe widget production if budgeted production for the period for deluxe widgets is 44,800 nits and actual production of deluxe widgets for the period is 58,000 units would be Da $553,795 b. $382,800 e $738,393 d. $110,759
Challenger Factory produces two similar products: regular widgets and deluxe widgets. The total factory overhead budget is $654,500 with 397,100 estimated direct labor hours. Deluxe widget production requires 4 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 verhead that Challenger Factory will allocate to deluxe widget production if budgeted production for the period for deluxe widgets is 44,800 nits and actual production of deluxe widgets for the period is 58,000 units would be Da $553,795 b. $382,800 e $738,393 d. $110,759
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Challenger Factory produces two similar products: regular widgets and deluxe widgets. The total factory overhead budget is $654,500 with
397,100 estimated direct labor hours. Deluxe widget production requires 4 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 44,800
units and actual production of deluxe widgets for the period is 58,000 units would be
O₂ a $553,795
Ob $382,800
Oc. $738,393
Od. $110,759
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